PleaseanswerONEofthefollowing over 350 words prefered and please show all work 1 Coppell Timber Company had total earnings last year of $5,000,000, but expects total earnings to drop to $4,750,000 this year because of a slump in the housing industry There are currently 1,000,000 shares of common stock outstanding The company has $4,000,000 worth of investments to undertake this year The company nances 40 percent of its investments with debt and 60 percent with equity capital The company paid $3 00 per share in dividends last year If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year If the company maintains a constant dividend payout ratio each year, how large a dividend will each shareholder receive this year Ifthecompanyfollowsaconstantdollardividendpolicy,howlargeadividendwilleachshareholderreceivethisyear Lindsey Insurance Co has current sales of $10 million and predicts next years sales will grow to $14 million Current assets are $3 million and xed assets are $4 million The rms net pro t margin is 7 percent after taxes Presently, Lindsey has $900,000 in accounts payable, $1 1 million in long term debt, and $5 million (including $2 5 million in retained earnings) in common equity Next year, Lindsey projects that current assets will rise in direct proportion to the forecasted sales, and that xed assets will rise by $500,000 Lindsey also plans to pay dividends of $400,000 to common shareholders What are Lindseys total nancing needs for the upcoming year Giventheaboveinformation,whatareLindseysdiscretionarynancingneeds Worthington, Inc is planning to issue $7,500,000 in 120 day maturity notes carrying a rate of 11 percent per year Worthingtons commercial paper will be placed at a cost of $35,000 What is the effective cost of credit to Worthington

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PleaseanswerONEofthefollowing:over 350 words prefered and please show all work. 1. Coppell Timber Company had total earnings last year of $5,000,000, but expects total earnings to

PleaseanswerONEofthefollowing:over 350 words prefered and please show all work.

1. Coppell Timber Company had total earnings last year of $5,000,000, but expects total earnings to drop to $4,750,000 this year because of a slump in the housing industry. There are currently 1,000,000 shares of common stock outstanding. The company has $4,000,000 worth of investments to undertake this year. The company nances 40 percent of its investments with debt and 60 percent with equity capital. The company paid $3.00 per share in dividends last year.

If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year?
If the company maintains a constant dividend payout ratio each year, how large a dividend will each shareholder receive this year?
Ifthecompanyfollowsaconstantdollardividendpolicy,howlargeadividendwilleachshareholderreceivethisyear?
Lindsey Insurance Co. has current sales of $10 million and predicts next years sales will grow to $14 million. Current assets are $3 million and xed assets are $4 million. The rms net pro t margin is 7 percent after taxes. Presently, Lindsey has $900,000 in accounts payable, $1.1 million in long-term debt, and $5 million (including $2.5 million in retained earnings) in common equity. Next year, Lindsey projects that current assets will rise in direct proportion to the forecasted sales, and that xed assets will rise by $500,000. Lindsey also plans to pay dividends of $400,000 to common shareholders.
1. What are Lindseys total nancing needs for the upcoming year?
2. Giventheaboveinformation,whatareLindseysdiscretionarynancingneeds?
Worthington, Inc. is planning to issue $7,500,000 in 120-day maturity notes carrying a rate of 11 percent per year. Worthingtons commercial paper will be placed at a cost of $35,000. What is the effective cost of credit to Worthington?