Question
MMM Corporation has the following data Outstanding shares of common stock 1000 thousand Target capital structure Debt 70% Equity 30% Projected net income [P(NI)] 5000
| MMM Corporation has the following data | ||
| Outstanding shares of common stock | 1000 | thousand |
| Target capital structure | ||
| Debt | 70% | |
| Equity | 30% | |
| Projected net income [P(NI)] | 5000 | thousands |
| The projected investments for next year | 6000 | thousands |
| Assume the residual distribution model is used with respect to dividends. | ||
| Find dividend per share?(DPS) |
| [$1, $3] |
| [$3, $4] |
| [$4, $5] |
| more than $5 |
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
