Question
Microsoft wants to maintain its capital structure that is 30 percent debt, and 70 percent equity. The company forecasts that its net income this year
Microsoft wants to maintain its capital structure that is 30 percent debt, and 70 percent equity. The company forecasts that its net income this year will be $3383131. The company follows a residual distribution policy (with all distributions in the form of dividends) and anticipates a dividend payout ratio of 20 percent.
What is the size of the companys capital budget?
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
