Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the hastings sugar corporation has the following p

The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital...

50.1K

Verified Solution

Question

Finance

The Hastings Sugar Corporation has the following pattern of netincome each year, and associated capital expenditure projects. Thefirm can earn a higher return on the projects than the stockholderscould earn if the funds were paid out in the form of dividends.

YearNet Income   Profitable Capital
Expenditure
1$18 million$ 7 million
220 million12 million
310 million7 million
420 million8 million
515 million8 million

The Hastings Corporation has 2 million shares outstanding (Thefollowing questions are separate from each other).  

c. If the firm pays a 10 percent stock dividendin years 2 through 5, and also pays a cash dividend of $2.40 pershare for each of the five years, how much in total dividends willbe paid?


Total cash of dividends______

ANSWER IS NOT 29

Answer & Explanation Solved by verified expert
3.6 Ratings (484 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

List & describe the various characteristics that distinguish living things from non-living things. Property Description

Economics
1.2K views

Consider an individual making choices over two goods, x and y with initial prices px= 2...

Biology
1.2K views

Word count 250 350 In Solan s article When Judges Use the Dictionary he claims...

Biology
1.2K views

Recombination within which type of inversion heterozygote results in a dicentricchromosome? Why does a dicentric...

Calculus
1.2K views

-Determine the slope of the tangent to the graph of y = (x + 3x...

Calculus
1.2K views

38 Find the function value to four places csc 83 40 A 1 006 B...

Calculus
1.2K views

Let h(x) = x + 7x + 6Determine the derivative of h- at x =...

Accounting
1.2K views

Please provide the excel answer including formula of each cell. ...

Accounting
1.2K views

If sweeten Company's labor time ticket totaled $33,000 for the month of March, then how...

Accounting
1.2K views

A stock is trading at $85 per share. The price just paid a $7 dividend...

Accounting
1.2K views

At the beginning of the year, long-term debt of a firm is $282 and total...

Accounting
1.2K views

The Stibbe Construction Company switched from the completed contract method to the percentage-of-completion method of...