1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for the ask) 4. Label your answer and solution properly (Peso sign, write "days" "times or x", %) 4. Double rule your answer The Dawson Corporation projects the following for the year 2012: Earnings before interest and taxes P35 million Interest expense 5 million Preferred stock dividends 4 million Common stock dividend payout ratio 30% Common shares outstanding 2 million Effective corporate income tax rate 4 0% If Dawson Corporation's common stock is expected to trade at a price/earnings ratio of eight, the market price per share (to the ne arest peso) would be
1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for the ask) 4. Label your answer and solution properly (Peso sign, write "days" "times or x", %) 4. Double rule your answer The Dawson Corporation projects the following for the year 2012: Earnings before interest and taxes P35 million Interest expense 5 million Preferred stock dividends 4 million Common stock dividend payout ratio 30% Common shares outstanding 2 million Effective corporate income tax rate 4 0% If Dawson Corporation's common stock is expected to trade at a price/earnings ratio of eight, the market price per share (to the ne arest peso) would be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Write the Ratio/ Equation to be used, IF
REQUIRED
2. Substitute the given
3. Solution (Solve for the ask)
4. Label your answer and solution properly (Peso
sign, write "days" "times or x", %)
4. Double rule your answer
The Dawson Corporation projects the
following for the year 2012:
Earnings before interest and taxes
P35 million Interest expense 5
million Preferred stock dividends 4
million Common stock dividend
payout ratio 30% Common shares
outstanding 2 million
Effective corporate income tax rate 4
0%
If Dawson Corporation's common
stock is expected to trade at a
price/earnings ratio of eight,
the market price per share (to the ne
arest peso) would be
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