This is a very nice paper and reads very well. Thank you for another job well done!
The Scanlon Company’s optimal capital structure calls for 50 percent debt and 50 percent common equity. The interest rate on its debt, rd, is a constant 10 percent; its cost of common equity from retained earnings, rs, is 14 percent; the cost of equity from new stock is re, is 16 percent; and its marginal tax rate is 40 percent.Scanlon has the following investment opportunities:Project A: Cost = $5 million; IRR = 20%Project B: Cost = $5 million; IRR = 12 %Project C: Cost = $5 million; IRR = 9%Scanlon expects to have net income of $7,278,500. If Scanlon bases its dividend on the residual dividend policy, what will its payout ratio be?
Net income projected7,278,500D/E Target1 (E/V=50%, D/V=40%)Capital Budgeted10,000,000 WACC Maximum capital spending with no outside equity0.5*C=7278500C=7278500/0.5C14,557,000 Since…
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more