BU393 Lecture Notes - Lecture 14: Dividend, Shares Outstanding
Document Summary
Lecture questions - dividends and other payouts slides, bu393. All questions come from the dividends and other payouts slides on mls. Solutions for these questions come from lectures (dr. kelly). Typeset by julian park: (slide 22) farside corp follows a strict residual dividend policy. If planned investment outlays for the coming year are ,000, will. Note that implies that every project is nanced with in debt to in equity. of all. 4 project nancing is equity, and is debt. So equity contribution = , 000 and debt contribution = 3() = , 000. The total capital spending possible without issuing new equity is the sum of the two, , 000. No dividend is issued if planned outlays are , 000. 4 (, 000) = , 000 will be nanced by internally-generated cash ow. Therefore, dividends paid = , 000 , 000 = , 000.
