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Question
Interim Systems has 1.5 million shares outstanding. This year Interim will have operating income (EBIT) of $18.2 million, interest expenses of $2.4 million, depreciation expenses of $3.1 million. What will the dividend per share be if Interim's dividend payout ratio is 40%? Assume a marginal tax rate of 40%.a. $2.53
b. $3.39
c. $2.03
d. $6.32
Answer
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Related questions
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Q:
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Q:
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Q:
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Q:
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Explain the pecking order theory.
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Q:
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Q:
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Q:
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Q:
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b. financial distress costs
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Q:
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Q:
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a. initially rises slowly, then falls beyond some point
b. increases at a steady rate throughout the entire range
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Q:
Perfect capital markets imply the following:
a. there are no transactions costs for buying and selling securities
b. relevant information is readily available for individuals and is costless to obtain
c. all investors can borrow and lend at the same rate
d. All of these answers are correct.
Q:
Two prominent finance researchers (Modigliani and Miller) showed that
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b. the value of the firm is independent of its capital structure in perfect capital markets with no income taxes
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Q:
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c. $6,250
d. $25,000
Q:
Borkstran has sales of $7.8 million, a variable cost ratio of 0.6, EBIT of $1.1 million, and a degree of combined leverage of 3.4. What is Borkstran's degree of financial leverage?
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c. 2.29
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Q:
Kenzel has an EPS of $4.20 and sales are $9 million. If the firm has a degree of operating leverage of 4.0 and a degree of financial leverage of 5.2, forecast EPS if the firm expects a 4% sales decline.
a. $0.71
b. $3.49
c. $4.03
d. $3.33