National Co.’ CFO has provided the following information: · The company’s capital budget is expected to be P5,000,000. · The company’s target capital structure is 75 percent debt and 25 percent equity. · The company’s net income is P4,600,000. If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.