Question
Please choose the right answer as fast as you can I don't need any Explanation it's an old practice I just want to know the
Please choose the right answer as fast as you can I don't need any Explanation it's an old practice I just want to know the right answer ASAP
Please I will make sure to rate the answer as helpful and leave a great feedback
1- BTT company has found three acceptable investment opportunities. The three projects require a total of RM3 million in financing. It is the companys policy to finance its investments by using 35% debt and 65% common equity. The firm has generated RM2.2 million dollars from its operations that could be used to finance the common equity portion of its investments. According to the residual dividend theory, how much would be paid out in dividends?
Select one:
A. RM180,000
B. RM1,050,000
C. RM250,000
D. RM1,950,000
2- BGT Electric is presently generating earnings available to common shareholders of RM7.25 per share. The firm's income tax rate is 24%. The firm's dividend payout ratio on common stock is 20%. What is the amount per share that BGT will pay in dividends to common shareholders?
Select one:
A. RM1.60
B. RM1.45
C. RM1.10
D. RM2.00
3- Your firm is trying to determine whether it should finance a project requiring RM800,000 with new common stock or with debt. The firm has the following financing alternatives. Alternative 1 is to issue new common stock. Sale price of the common stock is expected to be RM40 per share. Alternative 2 is to issue new bonds with a coupon rate of 12%. The firm has a corporate tax rate of 34%. The company currently has 40,000 shares of common stock outstanding, and RM90,000 face value of 10% debt outstanding. What is the indifference level of EBIT?
Select one:
A. RM99,000.
B. RM333,000.
C. RM66,600.
D. RM297,000.
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