R27 Dividends and Share Repurchases: Analysis

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IFT Team

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Aug 6, 2013, 8:42:20 AM8/6/13
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Brett Stehl

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Apr 16, 2014, 10:50:56 AM4/16/14
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On Reading 27- #13, why is the answer 40% instead of 60%.  Don't you need to take the earnings - (Capital budget x %equity).  In the solution they do  multiple the capital budget by %equity.  What is the reasoning for this?

On Tuesday, August 6, 2013 7:42:20 AM UTC-5, IFT Team wrote:

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