Homework answers / question archive / 1) What is the maximum dividend payout ratio consistent with no requiring external funds for a firm with ROE of 16%, a debt-equity ratio of 60%, and an internal growth rate of 8%? 2) Day's Delivery is an un-levered firm with an EBIT of $90,000

1) What is the maximum dividend payout ratio consistent with no requiring external funds for a firm with ROE of 16%, a debt-equity ratio of 60%, and an internal growth rate of 8%? 2) Day's Delivery is an un-levered firm with an EBIT of $90,000

Finance

Share With

1) What is the maximum dividend payout ratio consistent with no requiring external funds for a firm with ROE of 16%, a debt-equity ratio of 60%, and an internal growth rate of 8%?

2) Day's Delivery is an un-levered firm with an EBIT of $90,000. The un-levered weighted average cost of capital is 11% and the tax rate is 34%. What is the value of this firm?