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MICRO Inc. has net income of $74 million. It has identified positive NPV projects that require $66.6 million in funding. The company's target debt/equity ratio
MICRO Inc. has net income of $74 million. It has identified positive NPV projects that require $66.6 million in funding. The company's target debt/equity ratio is 0.5.
Part 1. What is the company's target capital structure weight for equity (E/V)?
Part 2. If the company follows a residual dividend policy, how much will it need to borrow (in $ million)?
Part 3. If the company follows a residual dividend policy, how much will it pay out in dividends (in $ million)?
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