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Middlesex Plastics Manufacturing had 2011 net Income of $15.0 trillion. Its 2012 mesh Income is herald to increase by 8%. The keep guilds big(p) structure has been 35% debt and 65% Equity since 2010, and the follow plans to have this superior structure in 2012. The company paid $3.0 jillion cash dividends in 2011. The company is planning to invest in a major peachy project in 2012. The jacket calculate for this project is $12.0 million in 2012. 1.If Middlesex increases its cash dividends in 2012 at the same freewheel of growth as its Net Income rate, what will be the recover 2012 dividend payout in Dollars? Net Income increase by 8 percentage: $15,000,000 * 0.08= $16,200,000 Total dividends payout in Dollars: $3,000,000 * 0.08= $3,240,000 2.What is the 2012 dividend payout dimension if the company increases its dividends at 8%. The 2012 payout ratio is $3,240,000/16,200,000= 0.20% 3.If the company follows a residual dividend polity, and maintains its 35% Debt send off in its with child(p) structure, and invests in the $12.

0 million working capital compute in 2012, what would be the remainder Dividends payout ratio? Residual Dividends Payout aim in (Dollars) : (0.65)($12,000,000)=$7,800,000 $16,200,000- $7,800,000= $8,400,000 The Residual Dividends payout ratio: $8,400,000/$16,200,000= 0.52% 4.How much additional capital (Debt and/or Equity) will the company have to raise from alien sources in 2012 if it invests in this capital project, and follows a residual dividend policy? From outside sources: (0.35)($12,000,000)= $4,200,000 Or $12,000,000 -$7,800,000= $4,200,000If you command to get a all-embracing essay, order it on our website: Orderessay

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