Please help with the given questions.
Question 1: Your company has decided that its capital budget during the coming year will be $20 million. Its optimal capital structure is 60 percent equity and 40 percent debt. Its earnings before interest and taxes (EBIT) are projected to be $34.667 million for the year. The company has $200 million of assets; its average interest rate on outstanding debt is 10 percent; and its tax rate is 40 percent. If the company follows the residual dividend policy and maintains the same capital structure, what will its dividend payout ratio be?
Question 2: Chandler Communications' CFO has provided the following information:
The company's capital budget is expected to be $5,000,000.
The company's target capital structure is 70 percent debt and 30 percent equity.
The company's net income is $4,500,000.
Question 3: If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year?
Question 4: Albany Motors recently completed a 3-for-1 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the total market value of the company?s stock equaled $1.5 billion. What was the price of the company's stock following the stock split?