Austin Manufacturing is considering three independent projec…
Austin Manufacturing is considering three independent projects that each require an initial investment of $1.75 million. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here: Project 1: cost of capital = 13%, IRR = 16% Project 2: cost of capital = 11%, IRR = 10% Project 3: cost of capital = 16%, IRR = 20% Assume that Austin Manufacturing only pursues positive net present value projects. The company’s optimal capital structure calls for 45% equity. Austin expects to have net income of $2,000,000. a. If Austin establishes its dividend from the residual dividend model, what will be its payout ratio? b. What would be the payout ratio if net income were only $1,500,000?
Read DetailsA first-grade teacher notices that one of her 7-year-old stu…
A first-grade teacher notices that one of her 7-year-old students is holding his pencil tightly in his fist, making most of his movements with his arm. He is drawing a picture of a man in a hat. She is surprised to see that at his age, he is ________,
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