Question
Jeff Healy, a junior financial analyst at The Soulless Shoe Company, has been asked to calculate this year's dividend. Jeff has gathered the following data:
Jeff Healy, a junior financial analyst at The Soulless Shoe Company, has been asked to calculate this year's dividend. Jeff has gathered the following data:
| CAPEX (spending on fixed assets) = $ 8295.00 |
| Increase in net working capital = $ 3555.00 |
| Target capital structure is 40 % |
debt and
60 %
| equity |
| Net income is = $ 9,000 |
If Soulless follows a residual dividend policy, what portion of its net income will it pay out as dividends?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
