Let a = -?x/?x and b = 1/?x in the linear function Z = a + bX. Which of the following statements is true?

Assume that Wilson Paper funds its capital spending out of its estimated full year earnings. If Wilson uses a residual dividend policy, determine Wilson’s implied dividend payout ratio.

Janet Wu is treasurer of Wilson Paper Company, a manufacturer of paper products for the office and school markets. Wilson Paper is selling one of its divisions for $70 million cash. Wu is considering whether to recommend a special dividend of $70 million or a repurchase of 2 million shares of Wilson common stock in the open market. She is reviewing some possible effects of the buyback with the company’s financial analyst. Wilson has a longterm record of gradually increasing earnings and dividends. Wilson’s board has also approved capital spending of $15 million to be entirely funded out of this year’s earnings. Book value of equity $750 million ($30 a share) Shares outstanding 25 million 12-month trading range $25–$35 Current share price $35 After-tax cost of borrowing 7% 60 Learning Outcomes, Summary Overview, and Problems part-i-07 13 January 2012; 10:21:1 Estimated full year earnings $25 million Last year’s dividends $9 million Target debt/equity (market value) 35/65 A. 36%. B. 40%. C. 60%.

How does public relations help in creating an integrated marketing communications system?

What will be an ideal response?