A company anticipates that its capital budget for the upcoming year will be RM 15...
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Finance
A company anticipates that its capital budget for the upcoming year will be RM 15 million. It follows a residual dividend payout policy and has a target debt:equity capital structure of 55:45. If it reports net income of RM 8.5 million, what will be its dividend payout ratio?
Select one:
a.
79.4%
b.
20.6%
c.
2.9%
d.
55.0%
The KY Ltd has been presented with an investment opportunity that will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $180,000 today, and the firm's cost of capital is 12 percent. Assume cash flows occur evenly during the year, what is the payback period for this investment?
Select one:
a.
6.12 years
b.
5.71 years
c.
4.86 years
d.
5.23 years
The dividend on a common stock will be $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You can sell the stock for $100 in 3 years. If you require a 12% return on your investment, how much would you be willing to pay for a share of this stock today?
Select one:
a.
$81.52
b.
$85.66
c.
$75.45
d.
$77.24
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