Homework Clinic
Social Science Clinic => Business => Finance => Topic started by: mrsjacobs44 on Apr 25, 2021
-
Kelly Varnsen, a junior financial analyst at Vandalay Industries, has been asked to calculate this year's dividend. Kelly has gathered the following data:
CAPEX (spending on fixed assets) = $17,000
Increase in net working capital = $3,000
Target capital structure is 20% debt and 80% equity
Net income is = $17,000.
If Vandalay follows a residual dividend policy, then the dividend payout rate this year is
◦ 20%.
◦ 25%.
◦ 30%.
◦ 35%.
◦ 40%.
-
20%.
-
Thank You