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Unformatted text preview: E? To answer this question, the FCFE was computed using the conservative approach (not factoring in new debt issues). Table 2.5 summarizes the findings: Table 2.5: Dividends versus FCFE for firms with payout ratio < 80% Company MicroFinancial Inc Telesp Celular Participacoes Dynegy Inc. 'A' AES Corp. El Paso Corp. Mission West Pptys Koger Equity Inc. R.J. Reynolds Tobacco TECO Energy Advanced Tobacco Products Apex Mortgage Capital Permian Basin Rty Tr Williams Coal Sm Gs Public Serv. Enterprise Allegheny Energy CMS Energy Corp. MFA Mortgage Aquila Inc. UIL Holdings NorthWestern Corp. Redwood Trust Inc DPS $0.20 $0.15 $0.30 $0.25 $0.87 $0.96 $1.40 $3.80 $1.42 $0.05 $2.00 $0.56 $0.88 $2.16 $1.72 $0.72 $1.12 $0.70 $2.88 $1.27 $2.52 EPS $1.26 $0.90 $1.46 $1.17 $2.93 $2.52 $2.94 $6.32 $2.31 $0.08 $3.11 $0.85 $1.33 $3.20 $2.51 $1.04 $1.58 $0.95 $3.77 $1.62 $3.18 FCFE/share $2.25 $0.14 -$2.67 -$3.17 -$7.17 $3.31 $3.12 $10.75 -$2.47 $0.08 $3.11 $1.05 $1.33 -$4.24 $1.36 -$4.46 $1.63 -$1.23 $7....
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This note was uploaded on 01/17/2012 for the course ECON 101 taught by Professor Econnorm during the Spring '11 term at Art Institutes Intl. Minnesota.

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