Gecko & Co. uses the residual dividend model to set its dividends. Sel

Gecko & Co. uses the residual dividend model to set its dividends. Selected financial information for Gecko is provided in the table below.

Selected Financial Information
Gecko & Co.
Net income $32 million
Investments $36.9314 million
Dividends per Share $0.40
Shares Outstanding 15.37 million

What is Gecko’s capital structure weight for equity?
A) 0.30
B) 0.40
C) 0.50
D) 0.60
E) 0.70

ANSWER

E