ALTERNATIVE DIVIDEND POLICIES

In 2015, the Keenan Company paid dividends totaling $2,390,000 on net income of $10 million. Note that 2015 was a normal year and that for the past 10 years, earnings have grown at a constant rate of 4%. However, in 2016, earnings are expected to jump to $17 million and the firm expects to have profitable investment opportunities of $7.4 million. It is predicted that Keenan will not be able to maintain the 2016 level of earnings growth because the high 2016 earnings level is attributable to an exceptionally profitable new product line introduced that year. After 2016, the company will return to its previous 4% growth rate. Keenan's target capital structure is 40% debt and 60% equity.

Regular-dividend	$
Extra dividend	$

1. Calculate Keenan's total dividends for 2016 assuming that it follows each of the following policies: (Write out your answers completely. For example, 25 million should be entered as 25,000,000.)
   1. Its 2016 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Round your answer to the nearest cent.
      $
   2. 
      
   3. It continues the 2015 dividend payout ratio. Round your answer to the nearest cent. Do not round intermediate calculations.
      $
   4. 
      
   5. It uses a pure residual dividend policy (40% of the $7.4 million investment is financed with debt and 60% with common equity). Round your answer to the nearest cent.
      $
   6. 
      
   7. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual dividend policy. Round your answer to the nearest cent.
2. 
   
3. Which of the preceding policies would you recommend?
   -Select-Policy 1Policy 2Policy 3Policy 4Item 6
4. 
   
5. Assume that investors expect Keenan to pay total dividends of $10,000,000 in 2016 and to have the dividend grow at 4% after 2016. The stock's total market value is $170 million. What is the company's cost of equity? Round your answer to two decimal places.
   %
6. 
   
7. What is Keenan's long-run average return on equity? [Hint: g = Retention rate x ROE = (1.0 - Payout rate)(ROE).] Do not round intermediate calculations. Round your answer to two decimal places.
   %
8. 
   
9. Does a 2016 dividend of $10,000,000 seem reasonable in view of your answers to parts c and d? If not, should the dividend be higher or lower?

In Fig. 24.23, each capacitor has C = 4.90 µF, and Vab = +34.0 V.

Figure 24.23

(a) Calculate the charge on each capacitor.

Q1 = ___ C	Q2 =___ C
Q3 =___ C	Q4 =___ C

(b) Calculate the potential difference across each capacitor.

V1 = ___ V	V2 = ___V
V3 = ___V	V4 = ___V

(c) Calculate the potential difference between points a and d.
____V

A motor has coils with a resistance of 26 Ω and operates from a voltage of 244 V. When the motor is operating at its maximum speed, the back emf is 146 V. 

(a) Find the current in the coils when the motor is first turned on. 

 (b) Find the current in the coils when the motor has reached maximum speed. 

 (c) If the current in the motor were 7.0 A at some instant, what is the back emf at that time? 

A series RL circuit is built with 190 Ω resistor and a 5.0-cm-long, 1.0-cm-diameter solenoid with 800 turns of wire.

A) What is the peak magnetic flux through the solenoid if the circuit is driven by a 12 V, 5.0 kHz source?

B) What capacitance, in μF, has its potential difference increasing at 1.5×10⁶ V/s when the displacement current in the capacitor is 0.60 A ?

Consider a simple RL circuit consisting of an ideal battery with voltage 30 V , a resistor of resistance 15 Ω, an inductor of inductance 7.0 H, and a switch all in series. The switch is initially open. a) Determine the ratio of the voltage across the resistor to the voltage across the inductor when the current has a value of 1.5 A. b) How much time has elapsed if the voltage across the resistor is 20 V ?

The volume of a microbial culture increases according to the formula:

V (cm^3) = 5 - 0.2 t e^t

Where t is the time in seconds. It is requested:

a. The units of the constants 5 and 0.2

b. Calculate the expression for V (in^3) in terms of t (h).

c. The exponential function and its argument must be non-dimensional. In appearance, the given function contradicts two rules and, however, is valid. Explain the paradox.

A quality control engineer wishes to estimate the mean output voltage of a DC power supply for different loads. The engineer measures output voltage when the supply is connected to 11 different loads and computes a mean 98.4 V and standard deviation 7 V. Assume that the output voltages follow a normal distribution.

(a) Construct and interpret the 99.9% confidence interval.

(b) Construct and interpret the 90% prediction interval.

A particle moves along a straight line with an acceleration a=2v1/2m/s2, where v is in m/s.

If s = 0, v = 1 m/s when t = 0, determine the time for the particle to achieve a velocity of 18 m/s. Also, find the displacement of particle when t = 1 s. Express your answer using three significant figures and include the appropriate units.