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NEW QUESTION: 1
A. Option A
B. Option B
C. Option D
D. Option C
Answer: B
NEW QUESTION: 2
Residco, Inc. expects net income of $800,000 for the next fiscal year. Its targeted and current capital
structure is 40 percent debt and 60 percent common equity. The director of capital budgeting has
determined that the optimal capital spending for next year is $1.2 million. Residco does not plan to issue
any new common equity next year. If Residco follows a strict residual dividend policy, what is the
expected dividend payout ratio for next year?
A. 10.0 percent.
B. 66.7 percent.
C. 90.0 percent.
D. 40.0 percent.
Answer: A
Explanation:
Choice "d" is correct. A strict dividend policy guides a company's management to pay no more (and no
less) in dividends from net income to generate a change in equity that produces or maintains a targeted
capital structure. The dividend pay out ratio is the ratio of dividends to income. The call of the question
requires the calculation of the ratio of dividends to income assuming income, capital projects and capital
structure amounts as follows:
Assuming the company is in compliance with the 40/60 Debt/Equity capital structure to begin with, 60% of
the $1,200,000 in capital projects will be financed by additions to equity the come from new earnings of
$ 800,000. The equity funded portion of capital projects is $720,000 ($1,200,000 x 60%).
Following a strict residual dividend policy, the company will pay out the difference between is additions to
equity ($800,000 in income) and the amounts reinvested in the business ($720,000).
The dividend will be $80,000. ($800,000 - $720,000).
The dividend payout ratio is, therefore, 10% ($80,000 in dividends/ $800,000 in income).
Choices "a", "b", and "c" are incorrect, per the above calculation.
NEW QUESTION: 3
Given:
And the commands:
Javac Test.java
Java Test 12345
What is the result?
A. Number us : 12345
B. A NumberFormatException is thrown at runtime
C. A NullPointerException is thrown at runtime
D. AnArrayIndexOutOfBoundException is thrown at runtime.
Answer: D
NEW QUESTION: 4
Workforce flexibility takes a number of different forms. Which of the following achieves flexibility where employees have the ability to move between tasks as and when required by the organisation?
A. Functional flexibility
B. Temporal flexibility
C. Shift system flexibility
D. Numerical flexibility
Answer: A
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Aalk - 2014-05-05 16:45:18
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