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I've tried twice and both times I was wrong. I don't know what I'm doing wrong. This is a more difficult but informative problem. James
I've tried twice and both times I was wrong. I don't know what I'm doing wrong.
This is a more difficult but informative problem. James Brodrick \& Sons, Incorporated, is growing rapidly and, if at all possible, would like to finance its growth without selling new equity. Selected information from the company's five-year financial forecast follows. a. According to this forecast, what dividends will the company be able to distribute annually without raising new equity and while maintaining a balance of $220 million in marketable securities? What will the annual dividend payout ratio be? (Hint: Remember sources of cash must equal uses at all times.) Note: Round dividends to the nearest million dollars and the payout ratio % to the nearest ones placeStep by Step Solution
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