The Capital Budget of Creative Ventures Inc

question 15

Multiple Choice

The capital budget of Creative Ventures Inc.is $1,000,000.The company wants to maintain a target capital structure that is 30% debt and 70% equity.The company forecasts that its net income this year will be $800,000.If the company follows a residual dividend policy, what will be its total dividend payment?

• A) $100,000
• B) $200,000
• C) $300,000
• D) $400,000
• E) $500,000

Determine the causes of tire wear and appropriate corrective actions.

Comprehend the regulations related to truck tire maintenance and replacement.

Understand the impact of tire pressure on truck operation and safety.

Acknowledge the environmental and safety regulations related to tire disposal.

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Definitions:

Venture Capital Fund

A fund that invests in high-growth companies in exchange for equity, or ownership stakes, typically in early-stage companies.

Private Placement

The offering of securities to a relatively small number of select investors as a way of raising capital.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting costs, legal fees, and registration fees.

Oversubscription Option

A clause in an offering agreement that allows the issuer to sell more shares than originally planned if the demand exceeds expectations.