Silvana Inc A) 469%
B) 49

question 5

Multiple Choice

Silvana Inc.projects the following data for the coming year.If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be? $\begin{array}{lc}\text { EBIT } & \$ 2,000,000 \text { Capital budget } &\$850,000\\\text { Interest rate } & 10 \% \% \text { Debt }&40\% \\\text { Debt outstanding } & \$ 5,000,000 \% \text { Equity }&60\% \\\text { Shares outstanding } & \$ 5,000,000 \text { Tax rate }&25\%\end{array}$

• A) 46.9%
• B) 49.3%
• C) 51.9%
• D) 54.7%
• E) 57.4%

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Definitions:

Distant Relationship

A relationship characterized by physical distance between parties, limited communication, or a lack of close emotional connection, impacting interaction dynamics.

Unacceptable Behavior

Actions or conduct deemed inappropriate or unacceptable by societal, professional, or specific group standards.

Negotiators' Past Relationship

The history and previous interactions between parties in a negotiation that can influence their current and future dealings.

Competitive

Characterized by or involving competition; striving to gain or win something by defeating or establishing superiority over others.