Question
In: Finance
1. Safety Dentistry stock trades at $30 per share. The company is contemplating a 3 for...
1. Safety Dentistry stock trades at $30 per share. The company is contemplating a 3 for 2 split. Assuming that the split will have no effect on the market value of its equity, what will be the company's stock price following the stock split? (express answer in dollars)
_______________
2. Marie Company is considering three independent projects, each of which requires a $4 million investment. The WAC is 11%. The estimated internal rate of return (IRR) is presented below:
| Project D | IRR = 14% |
| Project E | IRR = 12% |
| Project F | IRR = 10% |
The company's optimal capital structure calls for 40% debt and 60% equity. Net income is expected to be $7,500,000. If Marie establishes its dividends from the residual model, what will be its payout ratio?
a. 18%
b. 27%
c. 45%
d. 36%
Thank you in advance for your help with these two
questions...!!
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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