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Anderson Aeronautics will report a 2015 Net Income of $1,400,000   Prior to reporting this net income (and the rest of their income statement), the company wants to determine its annual dividend. The company has 125,000 shares of common stock outstanding, and its stock trades at $28 per share. The company had a 60% payout ratio in 2014.   a. If Anderson wants to maintain its 2014 payout ratio in 2015, what will be its per-share dividend in 2015?   b. The company reported net income of $1,800,000 million in 2014. Assume that the number of shares outstanding has remained constant. What was the company’s per-share dividend in 2014?   c. As an alternative to maintaining the same dividend payout ratio, Anderson is considering maintaining the same per-share dividend in 2015 that it paid in 2014. If it chooses this policy, what will be the company’s dividend payout ratio in 2015?   d. Which strategy, maintaining a constant dividend payout ratio or maintaining the same per-share dividend, will lead to higher retained earnings for the firm in 2015?   e. Assuming the firm can utilize the additional retained earnings to fund future investments, is the strategy in d advisable and why?    

Austin Manufacturing is considering three independent projects that each require an initial investment of $1.50 million. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:   Project 1:  cost of capital = 13%, IRR = 16% Project 2: cost of capital = 10%, IRR = 11% Project 3: cost of capital = 16%, IRR = 20%   Assume that Austin Manufacturing only pursues positive net present value projects. The company’s optimal capital structure calls for 45% equity.  Austin expects to have net income of $3,000,000.   a. If Austin establishes its dividend from the residual dividend model, what will be its payout ratio?   b. What would be the payout ratio if net income were only $2,250,000?

A is a finite non-empty set. The domain for relation R is the power set of A . (Recall that the power set of A is the set of all subsets of A .) For X ⊆ A and Y ⊆ A , X is related to Y if X and Y have the same cardinality (i.e., | X | = | Y | ). Select the description that accurately describes relation R .

Maxwell Corporation currently has a capital structure made entirely of equity with total invested capital of $8 million made up of 100,000 shares of common stock. They are considering issuing new debt to replace some of this equity. Maxwell currently has a beta of 2.1, and is considering replacing either $2 million in equity or $4 million in equity with new debt. Maxwell’s current corporate tax rate is 30%. The interest rate (rd) on $2 million of debt is 8%. The interest rate (rd) on $4 million in debt is 15%. The risk-free rate is 3% and the required return on the market is 14%. Maxwell has an EBIT of $3 million this year. Assume Maxwell has a payout ratio of 35% regardless of its capital structure and that their growth rate in earnings is 5% annually.   a. What will be Maxwell’s new levered beta if it replaces $4 million in equity with debt?   b. What will be Maxwell’s weighted average cost of capital (WACC) if it utilizes $4 million in debt?   c. What would be Maxwell’s earnings per share (EPS) if it issued $4 million in debt?   d. Assuming g=5%, what would be Maxwell’s stock price per share if it issued $4 million in debt? (Assume Maxwell just paid a dividend based on their current year earnings)

The first step in responding to both constructive and destructive criticism is to _______________.

Austin Manufacturing is considering three independent projects that each require an initial investment of $1 million. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:   Project 1:  cost of capital = 13%, IRR = 16% Project 2: cost of capital = 10%, IRR = 11% Project 3: cost of capital = 16%, IRR = 20%   Assume that Austin Manufacturing only pursues positive net present value projects. The company’s optimal capital structure calls for 45% equity.  Austin expects to have net income of $2,000,000.   a. If Austin establishes its dividend from the residual dividend model, what will be its payout ratio?   b. What would be the payout ratio if net income were only $1,500,000?

Listing all possible options is the _______________ step in the decision-making process.

The key to visualization is focusing on _______________.

Positive thinkers are healthier than negative thinkers because _______________.

The person you want to be or feel you ought to be is known as your _______________.