Question
MMM Corporation has the following data Outstanding shares of common stock 1000 thousand Target capital structure Debt 30% Equity 70% Projected net income [P(NI)] 5000
| MMM Corporation has the following data | ||
| Outstanding shares of common stock | 1000 | thousand |
| Target capital structure | ||
| Debt | 30% | |
| Equity | 70% | |
| 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 payout ratio |
| a- less than 25% |
| [b- 25%, 35%] |
| c- 50% |
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Accounting What the Numbers Mean
Authors: David Marshall, Wayne McManus, Daniel Viele
12th edition
007802529X, 1259969525, 978-1260565492
