1) Peterson Company has a capital budget of $1

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1) Peterson Company has a capital budget of $1.2 million. The company wants to maintain a target capital structure which is 60% debt and 40% equity. The company forecasts that its net income this year will be $600,000. If the company follows a residual distribution model and pays all distribution as dividends, what will be its payout ratio?

2) A firm has 10 million shares outstanding with a market price of $20 per share. The firms has $25 million in extra cash(short-term investments) that it plans to use in a stock repurcahse; the firm has no other financial investments or any debt. What is the firm's value of operation, and how many shares will remain after the repurchase?

3) JPix management is considering a stock split. JPix currently sells for $65 per share, and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split assuming that the split has no effect on the total market value of JPix's equity? Round your answer to the nearest cent.