Baseball Fanatic Company has a capital budget of $1.3 million. The company wants to maintain a target capital structure which is 55% debt and 45% equity. The company forecasts its net income this year will be $700,000. If the company follows the residual distribution model and pays all distributions as dividends, what will be its ultimate payout ratio? The payout ratio is (please show your work):
Answers
The ultimate payout ratio for Baseball Fanatic Company that has a capital budget of $1.3 million, using the residual distribution model, is 16.43%.
To find the ultimate payout ratio, we will follow these steps:
1. Determine the total equity financing needed based on the target capital structure.
2. Calculate the retained earnings based on the residual distribution model.
3. Compute the ultimate payout ratio using the net income and retained earnings.
Step 1: Determine the total equity financing needed
Total capital budget = $1.3 million
Target equity percentage = 45%
Total equity financing needed = Total capital budget * Target equity percentage
Total equity financing needed = $1.3 million * 0.45
Total equity financing needed = $585,000
Step 2: Calculate the retained earnings based on the residual distribution model
Retained earnings = Total equity financing needed
Retained earnings = $585,000
Step 3: Compute the ultimate payout ratio Net income = $700,000 Dividends = Net income - Retained earnings
Dividends = $700,000 - $585,000
Dividends = $115,000
Payout ratio = (Dividends / Net income) * 100%
Payout ratio = ($115,000 / $700,000) * 100%
Payout ratio = 16.43%
So, the ultimate payout ratio for Baseball Fanatic Company, following the residual distribution model and paying all distributions as dividends, is 16.43%.
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Related Questions
What happens in a monopolistically competitive market when firms exit the market?
Answers
In order to create an output at which marginal income and marginal cost are equal, the firm sets its price in accordance with its demand curve. Any economic gains or losses will eventually be offset by entry or exit in monopolistic competition, leaving enterprises with no economic profit.
What transpires in a market that is monopolistically competitive?
Monopolistic competition arises when numerous businesses provide rival goods or services that are comparable but imperfect replacements.
Entry barriers are low in monopolistic competitive industries, and decisions made by one firm do not directly affect those of its rivals.
Why Is Monopolistic Competition Important?
Monopolistic competition arises when numerous businesses provide rival goods or services that are comparable but imperfect replacements.
Low entry barriers and a lack of direct competition allow for low entry barriers in monopolistic competitive industries.
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What should investors consider when planning for their retirement? Check all that apply. -the amount an employer will match for a 401(k) -the contributions an employer will make to an IRA -the ideal age to establish a particular retirement plan -the amount an investor is allowed to contribute annually -the tax laws and breaks related to different retirement plans -the amount that can be withdrawn early without getting taxed
Answers
In a 401k the employer usually matches a percentage and if you are lucky dollar for dollar, where in an IRA it is does an an extra option with a set amount of money usually 2500 or more for each IRA contribution.
Correct option is A, C, D and E.
1. The amount an employer will match for a 401(k):- you don't have to forget when you will need the money, retirement is years away, but you have to know what choices will make it worth by the time you need the money back. And it is also important to know really how much you can invest. When you have a large amount more options are available. But using a variety of investments will reduce the risk.
3. The ideal age to establish a particular retirement plan:- that will set you up for the plan you need. Below 50 or older.
4. The amount an investor is allowed to contribute annually, the federal law allows a maximum contribution for participants older than 50.
5. The tax laws and breaks related to different retirement plans:- retirement plans can often give you tax benefits in the present it depends to the one you choose. For example, the payment of the tax on the money deposited in a traditional 401 (k) plan can be delayed until the money is withdrawn from the account.
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Answer:
A,C,D,E
Explanation:
I did it and this was correct.
At the current market price in the market for smartphones, the quantity of buyers is larger than the quantity of sellers. Given this situation, we can expect the market price of smartphones to: a) Increase b) Decrease c) remain unchanged
Answers
Given that the quantity of buyers is larger than the quantity of sellers in the market for smartphones at the current market price, we can expect the market price of smartphones to a) Increase.
When the quantity of buyers is larger than the quantity of sellers, it indicates a situation of excess demand or a shortage in the market.
In such a scenario, buyers compete with each other to purchase the limited supply of smartphones, driving up the demand and putting upward pressure on prices. Sellers have the advantage in this situation, allowing them to increase the market price of smartphones to capitalize on the imbalance between supply and demand.
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Judd owns a struggling farm that is not making a lot of money. He wonders if he is doing something wrong and
brings in an expert to teach him better methods for running his farm. Judd most likely hired someone who works in
Plant Systems
Food Products
O Agribusiness
O Natural Resources
Answers
Answer: C
Explanation:
If this is wrong I am so so sorry but I think that's by best guess
Answer
C. Agribusiness
Explanation:
(02.10 LC) What strategy works best to get out of a rut?
A) Attitude
B) Belief
C) Flexibility
D) Selling out
Answers
Answer is C Flexibility because that's the only thing that goes in the exercise category.
Explanation: I hoped that Helped!!
Answer:
Flexibility.
Explanation:
Cognitive flexibility refers to the brain’s ability to transition from thinking about one concept to another. The quicker you are able to switch or “shift” your thinking from one dimension (e.g. color of an object) to another (e.g. shape of an object), the greater your level of cognitive flexibility.
The ___ inkblot test employs a series of inkblot cards designed to reveal a person's unconscious desires, fears, and conflicts.
Answers
The Rorschach inkblot test employs a series of inkblot cards designed to reveal a person's unconscious desires, fears, and conflicts.
This psychological test, developed by Hermann Rorschach in the early 20th century, is based on the principle that individuals will project their thoughts and feelings onto ambiguous stimuli, such as the inkblot images.
During the test, the individual is presented with a series of inkblot cards, one at a time, and asked to describe what they see in each image. The responses are then analyzed based on various factors, including content, location, determinants, and popular responses. These interpretations provide insights into the individual's perception, thought processes, emotional state, and underlying psychological dynamics.
The Rorschach inkblot test is rooted in the psychodynamic theory, which suggests that individuals' perceptions are influenced by their unconscious mind. By presenting the individual with unstructured stimuli, the test aims to tap into their unconscious thoughts and feelings, allowing the examiner to gain a deeper understanding of their inner world.
It is important to note that the Rorschach test is a complex and nuanced assessment tool that requires extensive training and expertise to administer and interpret accurately. The test results are subject to multiple interpretations, and the examiner considers various factors to derive meaningful insights.
Overall, the Rorschach inkblot test provides a unique window into the individual's unconscious mind, allowing psychologists to explore their innermost thoughts, desires, fears, and conflicts. It is often used in clinical settings to aid in the assessment, diagnosis, and treatment planning for individuals with psychological disorders.
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Where is the location of the Board of Governors?
Answers
The publisher of Celebrity Living claims that the mean sales for personality magazines that feature people such as Megan Fox or Jennifer Lawrence are 1.5 million copies per week. A sample of 10 comparable titles shows a mean weekly sales last week of 1.3 million copies with a standard deviation of 0.9 million copies.
Answers
Answer and Explanation:
The computation is shown below:
For determining each part first we have to do the following calculations
Critical value of t = 3.250
Null hypothesis = 1.5
Alternative hypothesis ≠ 1.5
Population mean \(\mu\) = 1.5
Sample mean \(\bar X\)= 1.30
Sample size \(n\) = 10.00
Sample standard deviation \(s\) = 0.900
Standard error of mean is
\(s_x = \frac{s}{\sqrt{n} }\)
\(= \frac{0.900}{\sqrt{10.00}}\)
= 0.2846
Test static is
\(t = \frac{x - \mu}{s_x}\)
\(= \frac{1.30 - 1.5}{0.2846}\)
= -0.703
a. The null hypothesis is
μ = 1.5
Alternate Hypothesis is
μ ≠ 1.5
b. reject \(H_o\) if t is not between
-3.250 and 3.250
c. The value of the test statistic is
t = -0.703
(as we have computed above)
d. fail to reject \(H_o\) as this data does not contradict the publisher claim
How do economists attempt to predict the next business cycle? (leading economic indicator, Dow Jones
Industrial Average, leading economic index, econometric models)
I need very quickly please!
Answers
Answer:
Leading economic indicator.
Explanation:
Leading economic indicators are objective data regarding the economy of a given country or region, which allow projections of future development of the economy of that place. Thus, based on data such as the current economic performance of the place, inflation, the exchange rate, the unemployment rate, etc., projections can be made about how the future economic cycles of the place will develop.
Suppose that the local daily demand for iced coffee drinks is given by the demand function: Q=300-25P, where P is the price of an iced coffee drink.
a. Construct this demand curve in black. Place the quantity of iced coffee drinks demanded on the horizontal axis and the price of an iced coffee drink on the vertical axis.
b. Suppose that iced coffee drinks are a normal good, and that consumers’ incomes fall. The demand for iced coffee drinks decreases by 50 units at every price. What is the new demand function (i.e., equation)?
c. Suppose that iced coffee drinks are a normal good, and that consumers’ incomes fall. The demand for iced coffee drinks decreases by 50 units at every price. Construct the new demand function in blue.
Answers
a. To construct the demand curve, we can first use the demand function provided, Q=300-25P. To plot this on a graph, we can plug in different values of P to find the corresponding values of Q. For example:
When P = 0, Q = 300-25(0) = 300
When P = 1, Q = 300-25(1) = 275
When P = 2, Q = 300-25(2) = 250
We can plot these points on a graph with Q on the horizontal axis and P on the vertical axis, and connect them to form the demand curve.
b. The new demand function would be Q = 250-25P.
c. To construct the new demand function in blue, we can start with the same process as before, using the new demand function, Q = 250-25P.
For example:
When P = 0, Q = 250-25(0) = 250
When P = 1, Q = 250-25(1) = 225
When P = 2, Q = 250-25(2) = 200
We can plot these points on the same graph as before, but this time use blue color to distinguish it from the previous demand function.
who is johnny sins?
A - a doctor
B -dentist
C -firefighter
Answers
Answer:
A-doctor
Explanation:
Tariffs Group of answer choices may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). are per-unit subsidies designed to promote exports. are excise taxes on goods exported abroad. are also called import quotas.
Answers
Answer:
imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs).
Explanation:
A tariff is a compulsory sum levied on the importation of goods. the purpose of tariffs is either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). by imposing tariffs, imported goods become more expensive. this discourages importation and encourages individuals to patronise locally produced goods.
If you are projecting your future financially, what are your
doing?
Risking
Forecasting
Managing
Expanding
Answers
Answer:
Forecasting
Explanation:
Because a weather forecast looks ahead for weather. You are forecasting your financial future
Within how many days after initially commencing work must an employer report a new employee, according to PRWOR?
Answers
Answer:
20 days
Explanation:
The full meaning of PRWOR is Personal Responsibility and Work Opportunity Reconciliation Act of 1996 of the U.S..
PRWOR is a detailed bipartisan welfare reform plan that brought a change to the U.S. welfare system in a dramatic way whereby time-limited assistance is required to be exchange for work.
One of the contents of PRWOR is that it mandates an employer report a new employee within 20 days after the employee initially commencing work by filing a new hire reporting form.
Therefore, according to PRWOR, an employer report a new employee must report a new employee 20 days after initially commencing work.
Employers across diverse industries have common expectations for their employees.
True
False
Answers
False
Explanation:
cause they're different parts of careers therefore theyd have to have different expectations for each, cause theyre not the same
increasing levels of literacy among women is shown to ________.
Answers
increasing levels of literacy among women have been shown to have a significant impact on various aspects of society, including education, employment, healthcare, gender equality, and poverty reduction.
increasing levels of literacy among women have been shown to have a significant impact on various aspects of society. When women are literate, they have access to education, employment opportunities, and healthcare, which leads to improved economic conditions for themselves and their families.
Literate women are also better equipped to participate in civic and political activities, contributing to increased gender equality and empowerment. They can advocate for their rights and make informed decisions about their lives.
Studies have shown that increasing literacy rates among women can contribute to lower fertility rates, improved child health and nutrition, and reduced poverty levels. When women are educated, they are more likely to have smaller families and better understand the importance of healthcare and nutrition for their children.
The empowerment of women through literacy has far-reaching positive effects on individuals, families, and communities. It helps break the cycle of poverty and creates a more equitable and prosperous society.
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what's the difference between buying a car with a loan and leasing a car
Answers
Answer:
leasing is like selling it buying it with a loan is like u dont have eough money so the bank gives u money and u have to repay them with intrests
Explanation:
consider a bicycle producer that initially employs 200 production workers and 10 customer-service workers. when the firm outsources its customer-service operation to india, the 10 customer-service workers lose their jobs. part 2 a. the net effect from outsourcing could be a loss of fewer than 10 jobs in the firm because part 3 a. the savings may allow the firm to hire more customer-service workers. b. the savings may allow the firm to hire more production workers. c. local laws may prevent employment reductions. d. the 200 production workers will work harder.
Answers
savings may allow the irm to hire more production workers.
When a firm outsources its customer-service operation to India, the 10 customer-service workers lose their jobs. However, outsourcing can have a net effect of creating additional jobs within the firm. Here's why:
1. Outsourcing the customer-service operation to India can result in cost savings for the firm. This is because labor costs in India are generally lower than in other countries.
2. The cost savings obtained from outsourcing can be used to invest in other areas of the business, such as hiring more production workers. By expanding the production team, the firm can increase its manufacturing capacity and potentially meet the growing demand for bicycles.
3. The increased production capacity can lead to an increase in sales and revenue for the firm. As a result, the company may need to hire more workers to keep up with the higher production levels and ensure customer satisfaction.
It's important to note that the other options listed (a, c, and d) may not directly address the net effect of outsourcing on job loss or creation within the firm. For example, while it is possible that the savings may allow the firm to hire more customer-service workers (option a), this is not the most direct answer to the question.
In summary, outsourcing the customer-service operation can lead to cost savings for the firm, which may then be used to hire more production workers, potentially offsetting the job loss from outsourcing.
What is a small business according to the SBA?
Answers
It uses firm income (from $1 million including over $40 millions) and employment to define small businesses (from 100 to 1,500 employees).
SBA stands for what in a small business?Its U.S. Small Business Agency (SBA) supports Americans in establishing successful enterprises and fostering their growth. For instance, a roofing company is considered a small business by the SBA if their yearly sales are $16.5 million or less. A small business is described as a company that employs a small number of people, usually less than 500, and runs separately from bigger organisations. A sole proprietor or a small group of owners often run and own small firms, which are usually privately owned and operated.
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Blossom Company is considering an investment that will return a lump sum of $850,000 3 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Blossom Company pay for this investment to earn an 6% return? (Round answer to 2 decimal places, e.g. 25.25.)
Answers
Ale jak się okazało w Polsce dniu narty nie skierowane to dniu tym świecie i jest ogóle nie ma problemu z tym że nie ma przecieku co w wszystko jutrzejszym terminie
which of the following statements concerning common stock and the investment banking process is not correct? a. if a firm sells 1,000,000 new shares of class b stock, the transaction occurs in the primary market. b. listing a large firm's stock is often considered to be beneficial to stockholders because the increases in liquidity and reputation probably outweigh the additional costs to the firm.
Answers
The answer is option c. is not correct, which is Stockholders have the right to elect the firm's directors, who in turn select the officers who manage the business.
Why do you use the word "business"?The actions and endeavors of a person engaged in the business of creating or providing goods or services with the intention of doing so for profit are likewise considered to be business. Definition in business. The term "business" designates an innovative person, group, or organization that engages in commercial activity. They might be business-related, industrial, or something else.
Which function does the company perform?In order to fulfill a need or demand of the general public, a business must manufacture and distribute goods and services. CSR is "a business activity that entails participating in projects that help a society," according to Business News Daily.
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those most responsible for the major policy decisions of a corporation are the:
Answers
Answer:
Board of directors
Explanation:
Four ways in which schools could promote entrepreneurship as a viable option to counteract unemployment
Answers
Answer:
Entrepreneurship is an important alternative to counteract unemployment. It not only gives provides employment to the entrepreneur but also provides jobs to others as well.
Explanation:
Entrepreneurship may be defined as the setting up of a business or a work looking out for making profit dealing with the risks and the challenges on its own.
Four ways in which the school can promote entrepreneurship as a viable option to counteract unemployment are :
build awareness and promote entrepreneurship among the students.Provide the benefits of being an entrepreneur and showing them the possibilities of setting up a business that can even provide jobs to others.Providing with valuable ideas and guidance regarding setting up a business and giving an overview of the current market trends and market study.Helping the students reach out to other entrepreneurs and also providing ways to get any financial aid to set up a business.Four Ways through which Schools can promote Entrepreneurship include the following
Creation of entrepreneurship centres to provide consulting to non-profits and small businesses.Awareness creation through seminars and lectures on the importance of entrepreneurship as an alternative to paid employment. Host entrepreneurship contests where incentives are given.Inviting influential and professional entrepreneurs to give lectures.What is Entrepreneurship ?Entrepreneurship is defined as the process of starting up a business, and taking up the responsibility of financial risk with the hope of making profit.
Entrepreneurship is a potent means of reducing unemployment to the lowest minimum.
Entrepreneurship brings about creativity and as such value is created which leads to more wealth.
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which dimension of justice is demonstrated when a company provides an honest explanation to employees for a decision that affects their employment?
Answers
Interactional justice is demonstrated when a company provides an honest explanation to employees for a decision that affects their employment.
What is Interactional justice?When decisions are made based on accurate knowledge, interactional justice is promoted. It is connected to both individual and collective civic activity in organizations. Interactional justice has no association with organizational citizenship behavior at the organizational level, but it does have a negative relationship with it at the personal level.
The measure used to judge how coworkers interact with one another at work is interactional fairness. This is relevant to how coworkers and managers treat each other as well as how managers treat members of their teams. Setting up rules of conduct is essential to ensuring that workers are treated with the utmost respect and that the company is recognized as a fair and secure workplace.
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What best describes the relationship between short and long-term goals?
Answers
on july 1, shady creek resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each june 30 of $37,258. what is the journal entry to record the first annual payment?
Answers
According to the question, journal entry to record the first annual payment is $17,258
What does the word "payments" mean?Payment refers to the exchange of cash, products, or service for goods or services in an amount that is mutually agreeable and has been prearranged. Cash, checks, wire transfers, credit cards, debit cards, and even cryptocurrencies can be used to make payments. Recognizing Payment.
Brifing:Annual installment= Loan amount/annuity factor .
annual installment = 37,258.
principal = yearly installment - interest amount
Interest = rate × loan amount
= 8%× 250,000 =20,000
Principal in year 1 =37,258 - 20,000 =$17,258
Principal payable in year 1 = $17,258
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which of the following cash flows are classified as operating activities? (check all that apply.) multiple select question. payment of dividends cash for purchasing a warehouse to be used in the business cash for reacquiring common stock into treasury cash from sale of investments cash flow causing decrease in current liabilities cash from revenue earned in daily transactions
Answers
The cash flows shown below are classed as operational activities:
Cash flow causes a decrease in current liabilities.Cash from revenue earned in daily transactions.What are cash flow and its operational activities?Cash flow from operational activities (CFO) is the first portion of a business's cash flow statement, one of three primary corporate documents used in financial reporting. It calculates the cash inflows and outflows from the company's key business operations during a certain time period.
It is critical for businesses to understand the cash flow created by their operational operations since it may give strong insight into a company's overall financial health.
Indeed, many company executives believe that cash flow from operations is the most significant element of the cash flow statement.
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use an optimization model to determine the best course of action for your real estate company, using the following assumptions: you wish to maximize the net present value of profit over the next eight quarters. assume 6% irr, compounding quarterly. (so 1.5% per quarter) in each neighborhood in which they open an office, they will achieve a baseline of 5.5% market penetration, and earn a 5% commission on sales. for every .1% the commission you charge decreases, your market penetration will increase by .15%, (down to a minimum penetration of 4% or a maximum of 6%) you must pay rent and utilities in each office you open each month. determine the average cost per gross square foot of commercial real estate in your neighborhood for the last year (in nyc historical). [when determining this value, you should exclude properties where gross square feet or sale price is unknown.] each month you will pay 1.5% of this for rent and utilities for each square foot of office space you rent. you must rent at least 250 square feet of office space, plus 125 for each employee you hire. you may hire up to 3 employees. each employee you hire costs a yearly salary $65,000 including benefits, and increases your market penetration by .5%. your monthly operating budget is $15,000. you may add other assumption you deem realistic so long you provide the explanation in your report.
Answers
The best course of action for the real estate company is to open offices in neighborhoods with higher market penetration and lower commercial real estate costs, hire up to 3 employees, and set commission rates to achieve maximum net present value of profit over the next 8 quarters while staying within the monthly operating budget of $15,000.
To optimize net present value of profit, the real estate company should analyze market penetration, commission rates, and real estate costs in each neighborhood to determine which locations will yield the highest profit.
The company should also hire up to 3 employees to increase market penetration while staying within the operating budget. The commission rate should be set to maximize profit while also taking into account the relationship between commission rates and market penetration.
The company should aim to rent office space in neighborhoods with low commercial real estate costs and high market penetration, and adjust the office space size to meet the minimum requirements while minimizing costs.
Finally, the company should regularly monitor and adjust its strategy to adapt to changing market conditions.
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true or false: preference decisions are made to prioritize and select from capital budgeting alternatives.
Answers
Preference decisions are made to prioritize and select from capital budgeting alternatives is TRUE.
Capital Budgeting Decision happens when a company is contemplating a significant investment to support its own growth. There are 2 kinds of capital budgeting decisions:
Screening decisionsPreferences decisionsScreening capital budget decision happens when a company determine if a proposed investment meets certain requirements. Those requirements taken into consideration could be related to the investment's payback period, cost-benefit analysis, internal rate of return, and accounting rate of return. When a proposed investment is failed to meet the certain requirement, a company could directly decide to reject the investment. Screening decision is taked to see if the proposed investment is worth the company's time and money.
After the proposed investment passed the screening decisions and is shown to be advantageous, a company might do preferrence capital budgeting decision. Preference decisions allows a company to compare several alternative proposed investments that already met their screening criteria and ranks them in order of desirability. The company may choose the investment which best meets company goals.
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an arrangement that brings buyers and sellers together to do business with each other is ?
Answers
A market generally can be defined as an arrangement that brings buyers and sellers together to do business with each other. In the market, a seller and buyer is the main important things.
In business and economic, A market generally can be described as the sum total of all the buyers and sellers in the area or region under consideration. Based on the structure, a market can be classified into several types, such as perfect competition market, monopolistic competition market, oligopoly market and also monopoly market. Market structure has several important element, each element has their function through the process in the market, there are the number and size of sellers, entry and exit barriers, nature of product, price, selling costs.
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