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NEW QUESTION: 1
A. Option B
B. Option D
C. Option A
D. Option C
Answer: B
NEW QUESTION: 2
Petersen Co. has a capital budget of $1,200,000. The company wants to maintain a target capital structure, which is 60 percent debt and 40 percent equity. The company forecasts that its net income this year will be $600,000. If the company follows a residual dividend policy, what will be its payout ratio?
A. 20%
B. 0%
C. 40%
D. 60%
E. 80%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The amount of new investment, which must be financed with equity, is: $1,200,000 x 40% = $480,000.
Since the firm has $600,000 of net income only $120,000 will be left for dividends. This means the payout ratio is $120,000/$600,000 = 20%.
NEW QUESTION: 3
Which of the following server types requires the LARGEST amount of available hard drive space?
A. Print server
B. Directory server
C. Database server
D. Remote access server
Answer: C
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