Question
MMM Corporation has the following data Outstanding shares of common stock 1000 thousand Target capital structure Debt 50% Equity 50% Projected net income [P(NI)] 5000
| MMM Corporation has the following data | ||
| Outstanding shares of common stock | 1000 | thousand |
| Target capital structure | ||
| Debt | 50% | |
| Equity | 50% | |
| 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 |
| $2 |
| $3 |
| $4 |
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
