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Problem 6-11 This is a more difficult but informative problem. James Brodrick & Sons, Incorporated, Is growing rapidly and, If at all possible, would like
Problem 6-11 This is a more difficult but informative problem. James Brodrick \& Sons, Incorporated, Is growing rapidly and, If at all possible, would like to finance its growth without selling new equity. Selected Information from the company's five-year financlal forecast follows. a. According to this forecast, what dividends will the company be able to distribute annually without ralsing new equity and while maintaining a balance of $230 million in marketable securltles? What will the annual dividend payout ratio be? (Hint: Remember sources of cash must equal uses at all times.) Note: Round dividends to the nearest million dollars and the payout ratlo \% to the nearest ones place
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