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Ch 14: Assignment - Distributions to Shareholders: Dividends and Share Repurchases Consider the case or Yellow Duck Distribution Company: Yellow Duck Distribution Company is expected to generate $180,000,000 in net income over the next year. Yellow Duck Distribution Company has forecasted a capital budget of $83,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity. 64.63% If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year? 86.17% 73.24% 90.48% 30% Equity If Yellow Duck Distribution Company increases its debt ratio, then its dividend payout ratio will held constant. 70% Debt , assuming that all other factors are Most firms have earnings that vary considerably from year to year and do not grow at a reliably constant pace. Furthermore, their required investment may change often. Which of these statements is the most accurate? A residual dividend policy can't be of any help to most firms. O Most firms can still use the concepts behind a residual dividend policy to make long-run decisions about dividends.

Ch 14: Assignment - Distributions to Shareholders: Dividends and Share Repurchases consioer we case or venow yuck Dischounon company: Yeliow Duck Distribution Company is expected to generate $180,000,000 in net income over the next year, Yellow Duck Distribution Company has forecasted a capital budget of $83,000,000, and it wishes to maintain its current captal structure of 70% debt and 30% equity. If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend pryout ratio for this year? If Yesow Duck Distribution Company increases its debt ratio, then its dividend payout ratio will , assuming that all other factors are held constant Moet firms hove earnings that vary considerably from year to year and do not grow at a reliably constant pace. Furthermore, their reauired investment may change often. Which of these statements is the most accurate? A residual dividend policy cant be of any help to most fims. Most firms can stif use the concepta behind a residual divudens policy te make long-run decisions about dividends. Ch 14: Assignment - Distributions to Shareholders: Dividends and Share Repurchases consioer we case or venow yuck Dischounon company: Yeliow Duck Distribution Company is expected to generate $180,000,000 in net income over the next year, Yellow Duck Distribution Company has forecasted a capital budget of $83,000,000, and it wishes to maintain its current captal structure of 70% debt and 30% equity. If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend pryout ratio for this year? If Yesow Duck Distribution Company increases its debt ratio, then its dividend payout ratio will , assuming that all other factors are held constant Moet firms hove earnings that vary considerably from year to year and do not grow at a reliably constant pace. Furthermore, their reauired investment may change often. Which of these statements is the most accurate? A residual dividend policy cant be of any help to most fims. Most firms can stif use the concepta behind a residual divudens policy te make long-run decisions about dividends

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