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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?

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Top Answer

a) Closing cash = opening cash+Net profit+depreciation- capital expenditure+Change in working... View the full answer

Screenshot 2020-01-03 at 8.06.17 PM.png

Current Year Year 1
Year 2
Year 3
Revenue
100
140
196
274.4
Revenue Growth
40%
40%
40%
Net Profit
10
16.8
27.44
43.9
Net Profit%
12%
14%
16%
Capital Expenditure
40
46.00
52.90
60.84
CapEx growth...

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