Petersen Company has a capital budget of $1.0 million. The company wants to maintain a target capital structure that is 55% debt and 45% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?

Answers

Answer 1

Answer: 43.75%

Explanation:

Payout ratio = Dividends paid / Earnings

Company has a Capital budget of $1 million which must be financed by 45% equity.

= 1,000,000 * 45%

= $450,000

This will be taken from the Net income which would leave the following for dividends;

= 800,000 - 450,000

= $350,000

Payout ratio = 350,000/800,000

= ‭0.4375‬

= 43.75%


Related Questions

Compound interest is usually better than simple interest because it pays
interest on the principal and the interest earned in each period.
interest on the entire principal rather than the interest in each period.
more, as it is matched by an employer's 401k contribution.
more often throughout the year rather than once a year.​

Answers

Answer: interest on the principal and the interest earned in each period.

Explanation:that’s what i got lmk if it’s wrong sorry if it is

The compound interest is usually greater than simple interest because it pays interest on the principal and the interest earned in each period.

What is compound interest?

Compound interest is the interest payment that increases on the first sum of money and any earned interest over time. It is usually calculated on the accumulated amount of money.

Compound interest is greater than simple interest because the simple interest is always calculated on the principal amount, which means if the principal is 100 and the rate of interest is 10%, then the simple interest for every year is $10.

Compound interest is always greater than the simple interest because it is calculated o the accumulated sum of money, which means if the principal is $100 and the interest rate is 10%, then the compound interest for the first year is 10,

But for the next year, it is calculated on $110($100+10) i.e., in the second year the compound interest is $11.

Therefore, option A is correct.

Learn more about the compound interest, refer to:

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You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for three years. Calculate the outstanding balance on the loan after three years. The interest rate after the initial lock period is 6.5%. (Note: the term on this 3/1 ARM is 30 years.)
A) $336,294.25
B) $2,098.43
C) $347,901.57
D) $2,183.95

Answers

Answer:

A) $336,294.25

Explanation:

Loan = 350,000

Rate  6%

Years = 30

PMT = PMT(Rate/12, 30*12, -Loan)

PMT = PMT(6%/12, 360, -350,000)

PMT = $2,098.43

Loan balance after 3 years = 27 years left

Loan Balance = PV(Rate/12, 27*12, -PMT)

Loan Balance = PV(6%/12, 324, -2,098.43)

Loan Balance = $336,294.25

Vaughan Interiors needs help determining the Stockholders' Equity Account. Current account balances are: Cash $25,050, Accounts Receivable $12,400, Equipment $40,000, Accumulated Depreciation $22,750, Accounts Payable $15,750, Salaries Payable $12,150. What is the Stockholders' Equity Account Balance

Answers

Answer:

$1,750

Explanation:

Stockholder's equity would be calculated as;

= Current assets balance + Fixed asset balance - Current liability balance

Current assets balance = Cash $25,050 + Accounts receivable $12,400

Fixed assets = Equipment $40,000 - Accumulated depreciation $22,750 = $17,250

Current liability = Accounts payable $15,750 + Salaries payable $12,150 = $27,900

Therefore,

Stockholder equity account balance

= $12,400 + $17,250 - $27,900

= $1,750

Which sentence in this excerpt from Ambrose Bierce's "An Occurrence at Owl Creek Bridge" uses personification? Excepting the group of four at the center of the bridge, not a man moved. The company faced the bridge, staring stonily, motionless. The sentinels, facing the banks of the stream, might have been statues to adorn the bridge. The captain stood with folded arms, silent, observing the work of his subordinates, but making no sign. Death is a dignitary who when he comes announced is to be received with formal manifestations of respect, even by those most familiar with him. In the code of military etiquette silence and fixity are forms of deference.

Answers

Answer:

The sentence in this excerpt from Ambrose Bierce's "An Occurrence at Owl Creek Bridge" that uses personification is:

Death is a dignitary who when he comes announced is to be received with formal manifestations of respect, even by those most familiar with him.

Explanation:

Here, Ambrose Bierce or the narrator addresses death as a person.  He makes death to become a dignitary, capable of visiting a person or community.  Grammatically, personification is a literary device or a figure of speech in which human attributes or characteristics are ascribed to non-human things or objects as if they were human.  It uses metaphor, another literary device, to achieve this attribution.

Answer:

Death is a dignitary who when he comes announced is to be received with formal manifestations of respect, even by those most familiar with him.

Explanation:

In U.S. price support programs, the "loan rate" is:______.
a. determined by Federal Reserve policy.
b. the interest rate a farmer must pay if he borrows from the government with his crop as collateral.
c. the difference between the market price and the target price.
d. the proportion of the farmer's crop he can loan to the government.
e. the effective price (i.e. price floor) for the commodity to ensure loan repayment.

Answers

Answer: E. the effective price (i.e. price floor) for the commodity to ensure loan repayment

Explanation:

The Price Support Programm is a policy by the government that is used in order to help farmers when there's a reduction in prices of agricultural products by giving out insurance to the farmers.

In U.S. price support programs, the "loan rate" is simply the effective price (i.e. price floor) for the commodity to ensure loan repayment.

In an effort to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. What impact will this increased coverage have on the supply of hospital beds in the short run?
a. It will decrease the supply
b. It will not affect the supply.
c. It will increase the supply.

Answers

Answer: It will decrease the supply

Explanation:

From the question, we are informed that in order to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. Due to this, there will a rise in the number of hospital beds that will be required to cover for more people.

Since there is an increase in demand, there will be a reduction in supply in the short run as the increase in demand will be more than the supply of bed.

Chris wants to accumulate $112,000 in 4 years. He plans on making equal semiannual deposits into an investment account that earns 10% semiannually in order to reach his goal. How much must Chris invest every six months

Answers

Answer:

$11,728.85

Explanation:

the future value of the annuity = $112,000

number of periods = 8 semiannual payments

interest rate = 10% compounded semiannually = 5%

future value = payment x FV annuity factor

FV annuity factor 5%, 8 periods = 9.5491

payment = $112,000 / 9.5491 = $11,728.85

Arredondo, Inc. has current assets of $2,170, net fixed assets of $9,300, current liabilities of $1,350, and long-term debt of $3,980.
Required:
What is the value of the shareholders'equity account for this firm? How much is net working capital?

Answers

Answer:Shareholders' equity= $6,140

           Net working capital= $820          

Explanation:

Shareholders' equity  = Total  Assets - Total Liabilities

But,

Total Assets = Current assets + net fixed assets

$2,170 + $9,300 =$11,470

Total liabilities =Current Liabilities  + Long term debt

$1,350 +$3,980

=$5,330

Shareholders' equity =$11,470-$5,330 = $6,140

B) Net working capital is calculated as Current Asset - Current Liabilities

$2,170-$1,350

=$820

What factors contribute to the comparative advantages of countries?

Answers

Answer:

International trade is the exchange of capital, goods, and services across international borders or territories.

Each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations.

Benefits of trade include lower prices and better products for consumers, improved political ties among nations, and efficiency gains for domestic producers.

International trade is the exchange of capital, goods, and services across international borders or territories. Trading-partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products. In other words, each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations.

Explanation:

In economics, the production possibility frontier (PPF) is a graph that shows the combinations of two commodities that could be produced using the same total amount of the factors of production. It shows the maximum possible production level of one commodity for any production level of another, given the existing levels of the factors of production and the state of technology.

PPFs are normally drawn as extending outward around the origin, but can also be represented as a straight line. An economy that is operating on the PPF is productively efficient, meaning that it would be impossible to produce more of one good without decreasing the production of the other good. For example, if an economy that produces only guns and butter is operating on the PPF, the production of guns would need to be sacrificed in order to produce more butter. If production is efficient, the economy can choose between combinations (i.e., points) on the PPF: B if guns are of interest, C if more butter is needed, or D if an equal mix of butter and guns is required.

Answer:

The existence of a comparative advantages is in turn, affected by the things such as abundance, productivity, cost of Labour, land and capital.

Explanation:

Other face also might influence a country's comparative advantage in political terms such as; highly developed financial system or economies of scale.

How would the issuance of a mortgage note in exchange for a building be reported on the statement of cash flows?
A. Noncash finenctng and Investing actvity
B. Investing actvity
C. Operating activity
D. Financng activity

Answers

Answer:

A. Noncash financing and Investing activity

Explanation:

The Cash Flow Statement records all Cash related transactions and used to determine the movement in the Balance of Cash and Cash Equivalent. When mortgage note is issued in exchange of a building, this is simply an Exchange of Assets without the movement of cash. Non - Cash activities are not shown in the Cash Flow Statement.

Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the rate of 2% per year. The risk-free rate is 6% and the market risk premium is 8%. The stock of Old Quartz Gold Mining Company has beta of -0.25 (minus 0.25). The intrinsic value of the stock is

Answers

Answer:

$133.33

Explanation:

Calculation for The intrinsic value of the stock

Intrinsic value of the stock = 6% + [−0.25(14% − 6%)] = .04

Intrinsic value of the stock = 8/[.04 − (−.02)]

Intrinsic value of the stock = 8/.06

Intrinsic value of the stock = $133.33

Therefore the intrinsic value of the stock is $133.33

Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?
A) Character
B) Capacity
C) Capital
D) Collateral
E) Conditions

Answers

Answer:

D) Collateral

Explanation:

In the given situation it is mentioned that the Amy farmer wants a loan so that Amy could purchased the car also the bank wants to know the car trade in value So here the examination done by the bank would be collateral as the loan is to be taken for buying a car

So the same is to be considered

hence, the correct option is D

And all the other options are incorrect

dishwashers. How many of each type should Sparkle Clean produce to fulfill the order AND minimize their production cost

Answers

Answer:

hello your question is incomplete attached below is the complete question

Answer :

112 units of standard dishwashers  and

178 units of deluxe dishwashers

Explanation:

from  the calculations we can see that

D(x,y) > 0  and Vxx > 0

The cost will be minimized during production when 112 units of standard dishwashers and 178 units of deluxe dishwashers are produced by sparkle clean

attached below is a detailed solution

The marginal propensity to expend is 0.5 and there is a recessionary gap of $200. What fiscal policy would you recommend? (Assume mpe mpc)
A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.
B. Contractionary fiscal policy, decrease government expenditures by $200, or cut taxes by $100
C. Contractionary fiscal policy,decrease govenment expenditures by $100, or cut taxes by $200.
D. Expansionary fiscal policy, increase government expenditures by $200, or cut taxes by $100.

Answers

Answer: A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.

Explanation:

Recessionary gap = $200

Marginal Prospensity to Consume = 0.5

Spending multiplier will them be calculated as:

= 1/(1-0.5)

= 2

Tax multiplier will be:

= -0.5/(1-.5)

= -1

Therefore, the answer is option A"Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200"

Marigold Corp. constructed a building at a cost of $30600000. Weighted-average accumulated expenditures were $13000000, actual interest was $1300000, and avoidable interest was $604000. If the salvage value is $2400000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

Answers

Answer: 720,100

Explanation:

Given that:

Cost of building = 30600000

Avoidable interest = 604,000

Salvage value = 2400000

Useful life = 40 years

((Cost of building + Avoidable interest) - salvage value)) / 40

((30600000 + 604000) - 2400000)) / 40

= 28804000 / 40

= 720,100

A survey reveals that, on a small island, 175 people have jobs, 25 people are not working but are looking for jobs, and 90 people are neither working nor looking for work. The unemployment rate on the island is:____.

Answers

Answer:

The answer is = 12.5%

Explanation:

The 175 people that have jobs are in unemployment (employed).

The 25 people that are not working but are looking for jobs are called unemployed.

The 90 people are neither working nor looking for work for work are not counted in the employment.

Therefore, the labor force is employed people + unemployed people.

Labor force is 175 + 25= 200 people.

So, unemployment rate is:

(unemployed people ÷ labor force) x 100

(25÷200) x 100%

=12.5%

Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $140 per hour; the related hourly variable and fixed operating costs will be $75 and $18, respectively. If all employees are currently working at full capacity on other client matters, the per-hour opportunity cost of being unable to provide this new service is:______
a. $0.
b. $47.
c. $65.
d. $93.
e. $140.

Answers

Answer:

c. $65.

Explanation:

The computation of the per hour opportunity cost is as follows:

= Per hour revenue - per hour variable cost

= $140 - $75

= $65

The fixed cost would not be considered as it is a sunk cost

Therefore the  per hour opportunity cost is $65

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Which of the following is the last section on most job applications?

Answers

Taxi driver is the correct answer

Paolo owns a pizza shop. The price of pizza recently increased from $3 to $5 a slice. Paolo responded by increasing the quantity of slices he supplied from 100 to 150 slices per day. By the midpoint method, Paolo's price elasticity of supply is:_______.

Answers

Answer:

Paolo's price elasticity of supply is 0.80.

Explanation:

From the question, we have:

New quantity supplied = 150

Old quantity supplied = 100

New price = $5

Old price = $3

Generally, the formula for calculating the price elasticity of supply is as follows:

Price elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity supplied = {(New quantity supplied - Old

quantity supplied) / [(New quantity supplied + Old quantity supplied) /

2]} * 100 = {(150 - 100) / [(150 + 100) / 2]} * 100 = 40%

Percentage change in price = {(New price - Old price) / [(New price + Old

price) / 2]} * 100 = {(5 - 3) / [(5 + 3) / 2]} * 100 = 50%

Substituting the values into equation (1), we have:

Price elasticity of supply = 40% / 50% = 0.80

Therefore, Paolo's price elasticity of supply is 0.80.

A stock has an average return of 13.6% and a standard deviation of 8.4%. In any one given year, you have a 95% chance that you will not lose more than _____% nor earn more than ____% if you invest in this security.
a. 5.2% to 22.0%.
b. 3.2% to 30.4%.
c. 3.2% to 30.4%.
d. 5.2% to 22.0%.
e. 13.6% to 38.8%.

Answers

Answer:

options B and C are identical, and they are both right.

b. 3.2% to 30.4%. c. 3.2% to 30.4%.

you have a 95% chance that you will not lose more than 3.2% nor earn more than 30.4% if you invest in this security.

Explanation:

a 95% confidence level represents approximately 2 standard deviations, so the stock could lose up to 13.6% - (2 x 8.4%) = -3.2% in the worse case scenario. You should also be able to earn 13.6% + (2 x 8.4%) = 30.4% in the best case scenario.

define debit balance in passbook​

Answers

Answer:

The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals. ... On the other hand, the credit balance as per the cash book indicates bank overdraft.

The term inadequacy refers to:______
A. The inability of a plant asset to meet its demands.
B. An asset that is worn out.
C. An asset that is no longer functional.
D. The condition where the salvage value is too small to replace the asset.

Answers

Answer: A. The inability of a plant asset to meet its demands.

Explanation:

When something is said to be inadequate, it means that it is not in enough quantity or rather lacks the capacity to perform the tasks that it is needed for.

The same goes when this is being spoken in relation to an asset. A plant asset that is inadequate is unable to meet the demands that it was acquired for.

You own a stock that had returns of 8.40 percent, −6.30 percent, 21.40 percent, and 14.30 percent over the past four years. What was the geometric average return for this stock?
a. 8.36%
b. 8.96%
c. 9.45%
d. 10.24%
e. 9.83%

Answers

Answer:

b. 8.96%

Explanation:

As per given data

Year ____ Returns

_1 ______ 8.40%

_2 ______-6.30%

_3 ______21.40%

_4 ______14.30%

Now Use following formula to calculate the geometric average

Geometric Average = [tex]\sqrt[4]{x1 . x2 . x3 . x4}[/tex] - 1

Where

X1 = 8.40%

X2 = -6.30%

X3 = 21.40%

x4 = 14.30%

Placing value sin the formula

Geometric Average = [tex]\sqrt[4]{(1 + 0.0840) . (1 + (-0.0630)) . ( 1+ 0.214) . (1 + 0.143)}[/tex]  - 1

Geometric Average =  8.96%

Belkin co provides medical care and insurance benefits to its retireees in the current year belkin agrees to contribute 5% of the employees 310000 gross salaries to a terirement program what is the amount of employee benefits expense for the current period?
a. $25
b. $100
c. $250
d. $12,500
e. $25,000

Answers

Answer: 15,500

Explanation:

From the question, we are informed that Belkin co provides medical care and insurance benefits to its retireees in the current year Belkin agrees to contribute 5% of the employees 310000 gross salaries to a terirement program.

The amount of employee benefits expense for the current period will be calculated as:

= 5% × 310,000

= 5/100 × 310,000

= 0.05 × 310,000

= 15,500

Congress votes to substantially increase the minimum wage. The determinant causing the shift in this scenario is:___________.

Answers

Answer:

resource cost or availability

Explanation:

In the case when there is a votes of congress that rise the minimum wage. So this results in the shifting of the cost of the resource or the availability

Therefore as per the given situation there would be rightward shifting as the minimum wage is rised

Also the shifting could be done with respect to the resource cost or the availability

Why should speakers deliver the first sentence of her presentation for memory ?

Answers

Speakers should deliver the first sentence of their presentation from memory so that they can immediately establish eye contact and sound confident and knowledgeable. This gives a good first impression to the audience.

State four (4) activities of services that make trade easy​

Answers

Answer:

tourism, banking , consulting, energy services

hello anyone know carson lueders

Answers

Answer:

Im not sure who he is

Explanation:

never heard of them :|

An investor purchases a long call at a price of $3.05. The strike price at expiration is $46. If the current stock price is $46.10, what is the break-even point for the investor?
a. $32.50
b. $35.00
c. $37.50
d. $37.60

Answers

Answer: $49.05

Explanation:

The call was purchased at $3.05 and the strike price at expiration is $46. The total expenses at expiration is:

= 46 + 3.05

= $49.05

To make a profit, the stock price will have to be above $49.05 which makes it the breakeven point.

Option not included.

Which agency can request that more money be printed?
A. The Federal Reserve
B. The Federal Open Market Committee
C. The U.S. Treasury
D. The Central Bank

Answers

The agency that can request that more money be printed is the Federal Reserve. This is further explained below.

What Is The Federal Reserve?

Generally, The Federal Reserve System is responsible for maintaining a reliable, versatile, and secure financial system for the United States.

In conclusion, The Federal Reserve is the entity that has the authority to ask for further currency printing.

Read more about the Federal Reserve

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