Delta has a target capital structure of 60 debt and

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Delta has a target capital structure of 60% debt and 40% equity. In 2019, assuming they payout ratio of 38%, what is the maximum capital expenditure they could commit to and structure? Assume net income of $3.3m
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d. Net Income 50% Net Income 2018 $30,000,000.00 Outstanding Share $15,000,000.00 Annual Rate 5% Return on Share 12% (i) What is Super Thrift’s current (2018) dividend per share? (ii) What is the dividend per share expected for the next year (2019)? (iii) Use the Gordon growth model to calculate Super Thrift’s stock price today. Super Thrift Pharmaceuticals traditionally pays an annual dividend equal to 50% of its ne income this year (2018) is $30 million. The company has 15 million shares outstanding. earnings to grow at a 5% annual rate in perpetuity, and they require a 12% return on the
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0.175 thus resolves the ers the current red to the future tock rises since e, thereby lowering the w in order to avoid pital gain in the future
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d yield on the company stock? 2018, what will its hares outstanding has aintaining the same per-share hat will be the company’s y maintain the same dividend maintain their target capital
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et income. Net Investors expect eir shares.
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