Question 17 4 pts Petroxy Inc. has forecasted a net income of $5,700,000 for this year. Its…

Question 17 4 pts Petroxy Inc. has forecasted a net income of $5,700,000 for this year. Its common stock currently trades at $21 per share, and the company currently has 870,000 shares of common stock outstanding. It has sufficient funds available to pay a cash dividend, but many of its investors don’t like the additional tax liability to which the dividend income subjects them As a result, Petroxy’s management is considering making a share repurchase transaction in which it would buy back 75,000 shares of its outstanding shares in the open market by paying the current market share price. Assume that the repurchase transaction will have no effect on either the company’s net income or its price-to-earnings (P/E) ratio. What is Petroxy’s expected stock price after the stock repurchase transaction? (Note: Round your intermediate calculation to two decimal places. Round your answer to two decimal places.) $20.72 per share $23.02 per share O $27.62 ber share $28.78 pershare Question 18 4 pts 26 A A w ? & s MacBook Air 099 20 F3 DOO F4 17 F VO .. Ô A # 3 $ 4 % 5 & 7 * 8 – – 9 0 E R T Y Y U I O P Paul Inc. forecasts a capital budget of $700,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and she also wants to pay a dividend of $350,000. If the company follows the residual dividend model, how much income must it earn, and what will its dividend payout ratio be? O $742,350; 47.15% O $911,400; 38.40% O $639,450, 54.73% $801,150; 43.69% O $735.000: 47.62% Question 20 4 pts New Orleans Builders Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio?