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Solve Parts A-C. Ignore my answers As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend
Solve Parts A-C. Ignore my answers
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy: b) The total capital budget for next year is likely to be $500,000; c) The forecasted level of earnings next year is $800,000; d) The target or optimal capital structure is a debt ratio of 45%; Please answer the following questions: a. What will be the amount funded with equity for the project $275000 ? (Keep the answer to a whole number. Example of format $100000 ). b. Compute the amount of the dividend $325000. (Keep the answer to a whole number. Example of answer format: $1000 c. Compute the dividend pay-out ratio 54.17%. (Keep the answer to two decimals. Example of the answer format: 55.55% Step by Step Solution
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