Problems 1-5 ms appeor in Appendix A 13-1 Packet Prodhacts is planning for $5 million in capital expenditures next year. Packett's target capital strachure consists of 60% debt and 40% equity. If net income next year is 53 milion, and Packett folows a residual distribution policy with all distributions as dividends, whal will be its dividend payout ratio TOM Company has a capital budget of $1,125,000. The company wants to maintain a target capital structure that is 20% debt and 809% equity. The company forecasts that its net income this year will be $2000.000. IF the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio? Dbon Mode 13-2 Rasidual Dambution Poley 13-3 Wei Corporation expects next vear's net income to be $15 million. The firm's debt ratio is currently 40% Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year? Dvidend Payou 13-4 A firm has 10 million shares outstanding, with a $20 per share market price The firm has $25 million in extra cash that it plans to use in a stock repurchase: the firm has no other finan cial investments. What is the firm's value of operations and how many shares will remain after the repurchase? Sack Repurchase Eastern Shipping stock trades at $120 a share. The company is contemplating a 5-for-2 stock split. Assuming that the stock split will have no effect on the total market value of its equity what will be the company's stock price following the stock split? 13-5 Stock Spli