Delta Company has 100,000 shares outstanding and plans to pay $1.00 per share in dividends each quarter next year
January 5th, 2018
Delta Company has 100,000 shares outstanding and plans to pay $1.00 per share in dividends each quarter next year. Delta has a capital budget of $700,000 for next year and plans to maintain its present debt ratio of 0.30. If earnings are expected to be $7.20 per share, how much external equity must Delta raise?