Lecture Qs + Mini Assign. 2

PR 12-1A Dividends on Preferred and Common Stock Obj. 2 Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 250,000 shares of cumulative, preferred 2% stock, $20 par, and 500,000 shares of common stock, $15 par. Instructions 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form, using the following column headings: Year 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $ 80,000 90,000 150,000 150,000 160,000 180,000 Preferred Dividends Total Per Share Answer Check Figure: Common dividends in 20Y3: $20,000 Common…

Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, the required return on the stock is 11.5%, what is the value of the stock?

Item Company V Company U Dividend growth 41.8% 33.3% Dividend Payout 19.6% 31.1% Dividend Coverage (annual period) 5.9 5.4 Current Div. yield 0.3% 1.5% Based on the information above which company has a better dividend performance? Justify your answer

Financial accounting question

Financial Accounting Question

Q38 The current market price of an equity share of a company is OMR 70. The expected dividend per share is OMR 5.50. If the cost of equity is 14.85%, what would be the expected growth rate in dividends? a. 5.39% b. 7.85% c. 7% d. 5.5%

Accounting question

Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Υ7 20Y6 20Υ5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Υ4-20Υ8 Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders' equity 0.4 Required: 1.…

Stock Expected Dividend Expected Capital Gain A $0 $10 B $5 $5 C $10 $0 A.) If each stock is priced at $175, what are the expected net precentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (iii) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? B.) Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%, what would A,B, and C each sell for? Assume the expected dividend is a level perpetuity.

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Stock Expected Dividend Expected Capital Gain A $0 $10 B $5 $5 C $10 $0 A.)If each stock is priced at $175, what are the expected netpercentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%) and (iii) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? B.) Suppose that investors pay 40% on tax dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%, what would A,B and C each sdell for? Assume the expected dividend is a level perpetuity. (Please answer B)

1. stock     EPS     share price   Growth rate   A            $0.30     $4.80        4% B           $0.40     $5.50        6% C          $0.50     $7.50        7% D         $0.60     $8.00        5% Using the PEG ratio, rank the stocks in order of investment opportunity, the first having the best, the last having the worst. A. C,B,D,A   B. A,D,B,C  C.  C,D,B,A  D. B,D,C,A 2.Which of the following not true regarding financial statement A.Group financial statement be produced by each subsidiary as well as the parent entity B.Profit must be separated between members of the parent company and that of minority interest C.Minority interest share of equity represents that ‘part of a subsidiary’s equity not allocated to members of the parent company. D.Group financial statements must be produced by the parent entity only. E.None of the options provided.

Question 21 As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D 0 = $0.80; P 0 = $22.50; and g L = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings?   a. 11.25%   b. 10.69%   c. 11.84%   d. 12.43%   e. 13.05% Muscarella Inc. has the following balance sheet and income statement data: Cash $  14,000 Accounts payable $  42,000 Receivables 70,000 Other current liabilities     28,000 Inventories   210,000    Total CL $  70,000    Total CA $294,000 Long-term debt 70,000 Net fixed assets   126,000 Common equity   280,000    Total assets $420,000    Total liab. and equity $420,000 Sales $280,000     Net income $  21,000     The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70,…

Company Dividend Yield Price State Street 6.66% $27.09 hes Use the table above for this question. What is State Street's dividend?

Question 34 The equity portion of the balance sheet for BusFin Inc.is shown below. If the stock price is $30 per share, calculate the market to book ratio. Equity Portion of BusFinance Inc. Balance Sheet, 2022 Common stock ($0.25 par) $1,007,924 Capital surplus Retained earnings 27.46 41.32 48.67 30.00 13.73 $1,476,958 $1,919,506

QUESTION 5.1 Use the attached information and answer this qiestion: Use the Gordon growth model to estimate the cost of the ordinary shares of AMN Limited from the attached information.

Stock price$57.00Shares outstanding11,656,000Market cap$664,392,000Excess Cash$106,560,000Dividend per share$9.14

Name Symbol Close Net Chg Volume 52 Wk High 52 wk low Div Yield P/E YTD %Chg Gen Dyn GD 142.97 -0.47 1,375,410 153.76 121.61 3.04 2.13 15.39 11.  W4.08   1. How many shares could you buy for $5,000? 2. What must be Gen Dyn's earnings per share? 3. What was the firms' closing price on the day before the listing?

F1 please help.....

Financial Accounting Question please solve this problem

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