1 puckett products is planning for 5 million in capital

1. Puckett Products is planning for $5 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is $3 million and Puckett follows a residual distribution policy with all distribution as dividends, what will be its dividend payout ratio?

2. JPix management is considering a stock split. JPix currently sells for $120 per share and a 3 for 2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity?