Business
Business, 22.02.2020 04:12, dylanentwistle5197

Walsh Company is considering three independent projects, each of which requires a $4 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:
Project H (high risk): Cost of Capital = 16% IRR = 19%
Project M (medium risk): Cost of Capital = 12% IRR = 13%
Project L (low risk): Cost of Capital = 9% IRR = 8%
Note that the project’s costs of capital vary because the projects have different levels of risk. The company’s optimal capital structure calls for 40% debt and 60% common equity, and it expects to have net income of $7,500,000.
Required:
a. If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio?

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 08:30, isaicruz2018
Which actions can you improve your credit score? (multiple can be selected)having a good credit score should be your prime objective as credit companies analyze your creditworthiness before giving you a loan. there are certain guidelines you can follow to ensure you have a good credit score. always pay your mortgage interest on time. if you are a student, make student loan inquiries before taking any loan. if you have multiple credit cards, manage them judiciously. maintain a healthy balance in your bank account.1. always pay your mortgage interest on time.2. if you are a student, make student loan inquiries before taking any loan.3. if you have multiple credit cards, manage them judiciously.4. maintain a healthy balance in your bank account.
Answers: 1
image
Business, 22.06.2019 11:00, szinx
Abank provides its customers mobile applications that significantly simplify traditional banking activities. for example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. this unique service demonstrates the bank’s desire to practice which one of porter’s strategies?
Answers: 3
image
Business, 22.06.2019 16:30, tadams9922
Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income
Answers: 1
image
Business, 22.06.2019 19:40, jair512872
Lauer corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: date transaction number of units cost per unit 1/1 beginning inventory 210 $ 910 5/5 purchase 310 $ 1,010 8/10 purchase 410 $ 1,110 10/15 purchase 255 $ 1,160 during the year, lauer sold 1,025 laptop computers. what was cost of goods sold using the lifo cost flow assumption?
Answers: 1
Do you know the correct answer?
Walsh Company is considering three independent projects, each of which requires a $4 million investm...

Questions in other subjects:

Konu
Mathematics, 20.07.2021 22:20
Konu
English, 20.07.2021 22:20