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  3. 19) suppose a firm pays total dividends of $320,00

19) Suppose a firm pays total dividends of $320,000 out of net income of $2.7...

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Finance

19) Suppose a firm pays total dividends of $320,000 out of net income of $2.7 million. What would the firm's payout ratio be?

A) .32 B) 1.19 C) .119 D) 8.438

20) Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,500,000 needed to open an auto repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $1,500,000, term = 1 year, up-front fee = 25 basis points, back-end fee = 40 basis points. If you take down 95 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.

A) $ 3,750 B) $ 9,450 C) $ 6,000 D) $ 4,050

28) The additional funds needed by the firm can be calculated by assuming which of the following?

A) The firm's additional sales will grow proportionately as assets are purchased. B) The firm's additional capital needed will grow proportionately with projected changes in sales. C) The firm's balance sheet will grow proportionately with projected changes in sales. D) The firm's additional sales will grow proportionately as capital is brought on to the balance sheet.

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