Q3Company JC Electronics had a net income of $1,200,000 this year. The company has a target...

Q3Company JC Electronics had a net income of $1,200,000 this year. The company has a target capital structure of 43% in debt and the rest in equity. The company is considering the following independent projects to invest for next year:

Project A: capital budget 500,000; cost of capital 15%; IRR 13%.

Project B: capital budget 600,000; cost of capital 14%; IRR 15%.

Project C: capital budget 1,000,000; cost of capital 15%; IRR 18%.

Assuming that the above projects are the only items to be budgeted for next year. What will be this year's dividend payout ratio?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 7 months ago

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