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Neebom Corporation, a manufacturer of toys, has asked for your advice on dividend policy. Neebom had a net income of $150 million in 2015

 

Neebom Corporation, a manufacturer of toys, has asked for your advice on dividend policy. Neebom had a net income of $150 million in 2015 and reported depreciation of $20 million. Its balance sheets for 2014 and 2015 are below (in millions): Assets Liabilities 2014 2015 2014 2015 Net Fixed Assets $750 $800 Current Liabilities $50 $60 Current Assets Debt $200 $215 Cash $50 $100 Equity $650 $720 Non-cash $100 $120 (a) Estimate how much Neebom paid out as dividends during 2015. (2 marks) (b) Estimate how much capital expenditure Neebom had in 2015. (2 marks)

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