Chat with us, powered by LiveChat Week: 4 - STUDENT SOLUTION USA

Part: 1

Discuss why the dividend payment process is so much simpler for private companies than for public companies.

Note – Please note that the requirement is to post your Initial Response (250 words). Make sure you write these answers by conducting some research and cite both textbook and external credible sources.

Part: 2

Please answer the following problem questions(Each 175 words).

 1. Addition to retained earnings: Northwood, Inc., has revenue of $455,316, costs of $316,487, and a tax rate of 31 percent. If the firm pays out 45 percent of its earnings as dividends every year, how much earnings are retained and what is the firm’s retention ratio?

2. Payout and retention ratio: Goodwin Corp. has revenues of $12,112,659, costs of $9,080,545, interest payments of $412,375, and a tax rate of 34 percent. It paid dividends of $1,025,000 to its stockholders. What the firm’s dividend payout ratio and retention ratio.

3. Percent of sales: Given the data for Cattail Corporation in Problem 19.9, if you assume that all balance sheet items also vary with the change in sales, develop a pro forma balance sheet for Cattail for the next fiscal year. Assuming that the firm did not sell or repurchase stock, what is the cash dividend implied by the pro forma income statement and balance sheet?

4. Capital intensity ratio: Tantrix Confectioners has total assets of $3,257,845 and net sales of $5,123,951. What is the firm’s capital intensity ratio?

5. Capital intensity ratio: McDonald Metal Works has been able to generate net sales of $13,445,196 on assets of $9,145,633. What is the firm’s capital intensity ratio?

Be typed, double spaced, using Times New Roman font (size 12), with one inch margins on all sides and heading; citations and references must follow APA format. Include a cover page containing the title of the assignment, the students name, the professors name, the course title, and the date.

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