Strategic Systems Inc

question 28

Multiple Choice

Strategic Systems Inc.expects to have net income of $800,000 during the next year.Its target,and current,capital structure is 40 percent debt and 60 percent common equity.The Director of Capital Budgeting has determined that the optimal capital budget for next year is $1.2 million.If Strategic uses the residual dividend model to determine next year's dividend payout,what is the expected payout ratio?

• A) 0%
• B) 10%
• C) 28%
• D) 42%
• E) 56%

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Definitions:

Sampling Frames

Databases or lists that are used to define and select the sample in a research study for the purpose of making generalizations about a population.

Geographic Areas

are defined regions or spaces on the Earth's surface, which can be identified by physical features, political boundaries, or cultural characteristics.

Sampling Interval

The standard distance or time between samples when sampling a population.

Systematic Sampling

A method of sampling where every nth item in the target population is selected systematically for inclusion in the sample.