Question is provided in the screenshot below:
Answer: cash remaining-$9.81
b. Assume that the company decides to institute a dividend payout ratio of 20% and also to borrow $4 million every year for the next three years. How much stock can the company buy back over the three years, if it wants to have a cash balance of $10 million at the end of year 3?
a) Closing cash = opening cash+Net profit+depreciation- capital expenditure+Change in working... View the full answer