Mark’s Awesome Company needs to set its investment and divided policies for the upcoming year. They...

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Mark’s Awesome Company needs to set its investment and dividedpolicies for the upcoming year. They have three independentprojects from which to choose, each of which will require aninitial investment of $4 million. Each project has a different costof capital and IRR due to having different levels of risk. ProjectCost of Capital IRR A 10% 15% B 12% 18% C 9% 8% Mark’s AwesomeCompany wants to maintain their current capital structure of 40%debt and 60% equity. Net income is expected to be $7,000,000. IfMark’s Awesome Company continues its policy of all distributionscoming in the form of dividends, what will its payout ratio be??

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Mark’s Awesome Company needs to set its investment and dividedpolicies for the upcoming year. They have three independentprojects from which to choose, each of which will require aninitial investment of $4 million. Each project has a different costof capital and IRR due to having different levels of risk. ProjectCost of Capital IRR A 10% 15% B 12% 18% C 9% 8% Mark’s AwesomeCompany wants to maintain their current capital structure of 40%debt and 60% equity. Net income is expected to be $7,000,000. IfMark’s Awesome Company continues its policy of all distributionscoming in the form of dividends, what will its payout ratio be??