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I need an explanation for this Business question to help me study.Explain the following items as they relate to a company’s dividend policy:a) Why some companies do not pay a dividendb) Stock dividends/stock splitsc) Stable dollar dividend policyd) Stock buybacks(10 pts) 2.Suppose you are going to open a bakery, which will only sell cupcakes. Explain how you would make use of cost-volume-profit analysis for this bakery.(10 pts) 3.As a manager, it is necessary to make investing and financing decisions, which impact working capital. In the context of our class discussion of working capital management, discuss the following two types of decisions:a) Tradeoff between shortage costs and holding costs.b) The use of short-term money versus the use of long-term money.(9 pts) 4.As the owner of a delivery business, which has five delivery vehicles, you are thinking about replacing your existing vehicles with newer, more energy efficient vehicles. Explain how you would use capital budgeting to decide if you should purchase the new vehicles.(16 pts) 5.Riley Corporation is contemplating the appropriate level of current assets. The decision to determine the appropriate level of current assets will be based on return on equity. Riley is considering two alternatives; current assets would be 40 percent of sales or current assets would be 20 percent of sales. Riley’s sales are $8 million dollars. Riley expects its EBIT to be $1,200,000. Riley’s fixed assets total $7 million. Riley has a 40 percent debt ratio. Riley pays 8 percent interest on its debt and Riley has a 20 percent tax rate.Required:a) Determine the return on equity for the two policies.b) Which policy has more risk? Explain.c) Explain which policy you would chose.(8 pts) 6.In 2020, Nike, Inc. (NKE) paid total cash dividends of $1,452,000,000 and had net income of $2,539,000,000. NKE has 1,270,000,000 shares of common stock outstanding and the current market price per share of the common stock is $143. Required:a) Determine the dividends per share.b) Determine the dividend yield.c) Determine the earnings per share.d) Determine the dividend payout ratio.(8 pts) 7.Struss Corp. purchases $800,000 worth of materials each month on credit terms of 3/4, n /30. Struss always pays on day 30, never taking the discount. Strussdoes this because they do not collect from customers until the end of the month. Struss could borrow money from a bank at a rate of 12%. Explain through computations why it might be better for Struss to borrow the money from the bank.(12 pts) 8.Butler Corporation sells its product for $100 per unit. The variable cost per unit for the product is $40. Butler’s fixed cost is $18,000,000.DetermineButler’s breakeven point in revenues.b) Determine the operating income, if Butler sold 280,000 units.c) Explain if Butler Corporation should be concerned about the long-run success of the business. If management is concerned, what strategies might they consider?(15 pts) 9.Nunn Corporation is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul is $6.5 million plus $1,500,000 in installation costs. The life of the project is 8 years. At the end of the project the equipment will be sold for $700,000. Additional sales revenue from the overhaul should amount to $4 million per year, and additional operating expenses (excluding depreciation) will amount to 70 percent of the additional sales. The project will require an investment in working capital of $600,000 at the beginning of the project Nunn’s tax rate is 20 percent and Nunn has a cost of money of 18 percent. Determine whether or not Nunn should overhaul the equipment.-Show all computation
Requirements: As needed


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