Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. gravy company expects earnings of p30million next

Gravy Company expects earnings of P30million next year. Its dividend payout ratio is40%, and its...

80.2K

Verified Solution

Question

Finance

Gravy Company expects earnings of P30million next year. Its dividend payout ratio is40%, and its debt/equity ratio is1.50. Gravy uses nopreferred stock. At what amount of financing will there be a break point in Gravy's marginal costof capital?
A. P45million.
B. P30million.
C. P20million.
D. P18million.
Please help me

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The term "personality preference" typically refers to the basiccomponents of personality and not to...

Accounting
Q

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the...

Accounting
Q

In a constant-pressure calorimeter, 60.0 mL of 0.330 M Ba(OH)2 was added to 60.0 mL of...

Chemistry
Q

What would happen to a non halophile bacteria with damaged cell wall that are placed...

Biology
Q

Side College freshmen involved in a dating relationship agreed to participate in a nine month...

Basic Math
Q

If you hear someone joking about suicide,A. change the subjectB. take it seriouslyC. laugh along...

Basic Math
Q

Samias father received $5,600 from Social Security, but he deposited $2,600 of it in a...

Accounting
Q

Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:...

Accounting
Q

Which of the following transactions changes the mix of only liabilities? a.Writing off accounts receivable...

Accounting
Q

Chap 10 Probs 21 & 23 G Help Save & Exit Submit Saved Check my...

Accounting
Q

6. The main advantage of a Roth IRA is that it: Provides a well diversified...

Accounting
Q

Which of the following groups has the highest preference of payment in a company liquidation...

Accounting