Answered: Suppose a firm pays total dividends of…

Name: Suppose a firm pays total dividends of $35,000 out of net income of $2
Uploaded: 2022-11-22T13:58:24.000Z
Channel: Bartleby
Description: Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's payout ratio be?

Business

Finance

Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's payout ratio be?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3Q: If a “typical” firm reports $20 million of retained earnings on its balance sheet, can the firm...

See similar textbooks

Related questions

Q: A firm has a profit margin of 7% and an equity multiplier of 1.3. Its sales are $130 million, and it…

A: DuPont equation can be used to find the ROE (return n equity). This equation requires profit margin,…

Q: A firm has a debt to equity ratio of 40%, debt of $600,000, and net income of $100,000. What is the…

A: Debt to Equity ratio = Debt/Equity 40% = $600,000 / Equity Equity = $600,000 / 40% Equity = $1500000

Q: A firm has a profit margin of 7% and an equity multiplier of 1.9. Its sales are $230 million, and it…

A: The profit margin is 7%.Equity multiplier is 1.9.Sales are $230 million.Total assets are $92…

Q: The firm has sales of $6,000 and a profit margin of 6.5 percent. What is the firm’s net income?

A: The remaining amount of the revenue after the deductions of the expenses and the tax amount is term…

Q: a firm has earnings of $500 million of which 40% will be paid out to investors. the firm has $2.5…

A: When all the earnings available for common shareholders are distributed to common shareholders, the…

Q: Suppose a firm is paying dividend of $500000 out of net income of $2 million. What is the firm's…

A: Given: Dividend = $500000 Net income = $2000000

Q: (Round to the nearest dollar.) a. If the capital expenditure amount is $2 million, the amount of…

A: Dividend paid = Retained earnings - Equity financing required Dividend will only be paid if the…

Q: What is the firm's PEG ratio?

A: PEG ratio displays the relationship between the Earnings growth and the P/E ratio over a specific…

Q: A firm has a profit margin of 5.5% and an equity multiplier of 3.0. Its sales are $140 million, and…

A: Profit margin = 5.5%Equity multiplier = 3.0Sales = $140 millionTotal assets = $84 million

Q: If you know that a firm has its equity increased by JD10,000 . The firm has additional investments…

A: Retained earnings: Retained earnings is the earning set aside by the business from a portion of…

Q: Suppose a firm pays total dividends of $456,000 out of net income of $1.9 million. What would the…

A: Calculation of payout ratio:Hence, the payout ratio is 0.24.

Q: firm has net income of $2.3 million.the firms capital structure consists of equity of $15 million…

A: Sustainable Growth Rate(SGR) is the maximum growth rate that can be sustained by the company without…

Q: Suppose a firm has a retention ratio of 60 percent, net income of $8 million, and 4 million shares…

A: Retention ratio = 60% Net income = $8 million Number of shares = 4 million

Q: How much long-term debt does the firm have?

A: Long Term Debt: A debt issued by the corporation having a term of more than one year is called…

Q: "s Hardwoods has a dividend payout ratio of 45 percent, a return on assets of 9.4 percent, anc quity…

A: Growth rate can be calculated from the return on equity and retention ratio of the company that is…

Q: What is the net asset value of an investment company with $9,500,000 in assets, $610,000 in current…

A: price per share =(value of the assets- current liabilities)/no of shares outstanding…

Q: A firm has 41 million shares outstanding with a current share price of $4.30 The firm has a…

A: Calculation of Enterprise Value Enterprise value = Market Capitalization + Outstanding debt – Cash…

Q: A firm has $ 1.2 million in current assets and $ 1 million in current liabilities. If the company…

A: Current Ratio: A current ratio is a calculation that provides the relation between current assets…

Q: If a “typical” firm reports $20 million of retained earnings on its balancesheet, can the firm…

A: In balance sheet, shareholders’ equity part contains the retained earnings of the company. Retained…

Q: A firm has a tax burden ratio of .75, a leverage ratio of 1.25, an interest burden of .6, and a…

A: Formula:

Q: A firm has Capital of GHS 10,00,000; Sales of GHS 5,00,000; Gross Profit of GHS 2,00,000 and…

A: Net Profit Ratio(NPR) is used determine profitability of entity. It shows proportion of turnover of…

Q: NEKO Inc. has forecasted that its net income will be P400,000. The company has debt ratio of 30%.…

A: Net income (NI) = P400,000 Debt ratio = 30% Equity ratio (ER) = 100%-30% = 70% Investment…

Q: Consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other…

A: Net income: Profits available after deducting all the expenditure is called as net income.…

Q: A firm has EBIT of R375,000, interest expense of R75,000, preferred dividends of R6,000 and a tax…

A: Leverage is an investment technique that involves the use of borrowed money—specifically, the use of…

Q: A firm has gross profit of $45 million, EBIT of $20 million, and net income of $8.5 million. If the…

A: EPS stands for earnings per share. EPS means the amount of profit a company makes per share.…

Q: An all -equity firm reports a net profit margin of 12% on sales of $6 million. If the tax rate is…

Q: A company has an EPS of $2.00, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0#.…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: If we know that a firm has a net profit margin of 4.3 %, total asset turnover of 0.77, and a…

A: The computation of ROE is as follows: Hence, the return on investment is 4.50%

Q: Calculate the degree of financial leverage for a firm with EBIT of $6,000,000, fixed cost of…

A: The degree of financial leverage shows the potential impact of change in operating income that is…

Q: A firm's current market value of equity is $100 million. It has one million shares outstanding. The…

A: Current market price per share Current market price per share = Market value of equity / Number of…

Q: The free cash flow to the firm is reported as $300 million. The interest expense to the firm is $30…

A: Information povided

Q: Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the…

A: In the given question we need to compute the value of the firm.

Q: A company has sales of $200 million, NOPAT of $12 million, netincome of $8 million, net operating…

A: Given information: Sales amounted to $200 million, NOPAT of $12 million, Net income of $8 million,…

Q: A company retains 7,50,000 out of its current earnings. The expected rate of return to the…

A: Cost of retained earnings = Amount of Retained Earnings X [Expected Percentage of return on funds to…

Q: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the…

A: Pay-out ratio:The pay-out ratio is the ratio between the total dividend and net income. it is also…

Q: A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5…

A: Total sales is $64million Gross profit is $12million Operating income of $8.5 million Net income of…

Q: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the…

A: Dividend payout ratio refers to the fraction of net income that a company pays to its shareholders…

Q: a. generate an income statement and show net income b. what is the company's operating cash flow?…

A: Hey, since there are multiple subpart questions posted, we will answer the first three questions. If…

Q: A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and…

A: Given information : The market value of a company refers to the market price of the stock per share…

Q: Consider a retail firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets…

A: ROE is Return on equity, which means how much net income has been attributable to the equity…

Q: Bulldogs Inc. has forecasted that its net income will be P400,000. The company has debt ratio of…

A: Answer) Under residual model, dividend is paid to common stockholders after deduction of amount to…

Question

Practice Pack

OFFON

Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's payout ratio be?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

Includes step-by-step video

SEE SOLUTION Check out a sample Q&A here

Given-

VIEW

Solution-

VIEW

Trending now

This is a popular solution!

Learn your way

Includes step-by-step video

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If a “typical” firm reports $20 million of retained earnings on its balance sheet, can the firm definitely pay a $20 million cash dividend?
Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of $4,500,000 with a cost of capital of 11.5%. What is Tylers weighted average cost of capital?
Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of $5,500,000 with a cost of capital of 10.5%. What is Skylers weighted average cost of capital?
Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its quick ratio is 1.0. What is the firms level of current liabilities? What is the firms level of inventories?
Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be?
Suppose a firm is paying dividend of $500000 out of net income of $2 million. What is the firm's payout ratio?
Suppose a firm pays total dividends of $456,000 out of net income of $1.9 million. What would the firm’s payout ratio be? (Round your answer to 2 decimal places.)
Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be? Multiple Choice .42 .114 1.14 8.810
Suppose a firm has a retention ratio of 65 percent and net income of $9.9 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)