question archive 1) A company has a net income of $150M and capital budget of $80M
1) A company has a net income of $150M and capital budget of $80M
Subject:FinancePrice: Bought3
1) A company has a net income of $150M and capital budget of $80M. The
capital structure that needs to be maintained is 60% to debt and 40% to equity. Ignoring taxes, how much dividends should the company distribute using the Dividend Residual Distribution Method?
2) John, a plastic-surgeon, is the sole practitioner of John's Clinic. During
the current year, John's Clinic has total revenue of $197,000 and total expenses of $120,000. There is a monthly salary of $3,000 from the Clinic that is not included in the $120,000 of total expenses. What is John's income?
