5. Baby Heinz, Inc. has a ten-year history of weighted averageprofits of Php 1,000,000.00. Its weighted average dividend payoutpercentage over the last ten years has been 30 percent. Thecompany has valued its business using dividend paying capacitymethod and would like to sell 20% of its business at an amount ofPhp 750,000.00. What is the average Dividend yield rate of thecompany for the past 10 years?а. 8%b. 7%С. 2%d. 5%

Dividend is the part or share of profits that is being distributed to the shareholders of the…

Answered: 5. Baby Heinz, Inc. has a ten-year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Last year Rocco Corporation's sales were $650 million. If sales grow at 6.0% per year, how large (in millions) will they be 8 years later? O a. $977.36 million Ob. $689.00 million O c. $1,066.33 million Od. $962.00 million O e. $1,036.00 million
Five years ago, Weed Go Inc. earned $2.80 per share. Its earnings this year were $3-70. What was the growth rate in earnings per share (EPS) over the 5-year period? O a. 26.43% O b. 7.22% O c. 5.73% O d. 18.35% O e.4.75%
Weston Corporation just paid a dividend of $3.75 a share (i.e., Do $3.75). The dividend is expected to grow 11% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent. D1 = $ D2 = $ D3 $ %D D4 = $ D5 = $ %24 I| ||
Net profit of Lily Fashion House Ltd in the current year is $2,575, 000. The company is planning to launch a project that will requires an investment of $745 000 next year. Today the company’s stock has market value of $22/share. Lily Fashion House has the current capital structure of 60% in equity and 40% in debt. How much dividend Lily Fashion House can pay its shareholders this year and what is dividend payout ratio of the company. Assume the Residual Dividend Payout Policy applies?
The Lory Company had net earnings of $127,000 this past year. Dividends of $38,100 were paid. The company's equity was $1,587,500. If Lory has 100,000 shares outstanding with a current market price of $11.625 per share, and a dividend growth rate is 5.6%, what is the firm's discount rate?
Am. 362.
Radon Homes' current EPS is $6.50. It was $4.42 5 years ago. The company pays out 40% of its earnings as dividends, and the stock sells or $36. a. Calculate the historical growth rate in earnings. (Hint: This is a 5 - yeargrowth period.)b. Calculate the next expected dividend per share, DI . (Hint: DO = o.4($6.50)= $2.60) Assume that the past growth rate will continue.c. What is Radon's cost of equity, rs ?
Pimento Inc. estimates that this year’s earnings will be $75 million. There are 12 million shares outstanding at a price of $27.50 per share. Pimento had been following a 100% dividend payout policy until now but would now like to shift to the Residual Dividend policy for this year. Dividends from this year’s earnings are paid next year. a) What is the EPS and DPS for Pimento under the 100% dividend payout policy? b) If the planned capital outlay is for $72 million and the target capital structure is 1.5:1, willPimento be able to pay dividends as per the Residual Dividend Policy? If so, what will be the dividend per share? Investors require a 22.72% rate of return. Ignore taxes. c) IfPimento shifts from a 100% payout policy to the residual dividend policy, what impact will this have on its stock price, assuming the firm earns 22.72% as its ROE? Support your argument through relevant computations. Which argument of the dividend policy decision would you have demonstrated…
please help! asap
Musical Chipmunks Co. just paid a dividend of $2.75 per share. The analysts consensus is that its dividends will be increased by 3% per year, forever. Calculate Musical Chipmunks dividends per share in years 1, 2 and 3. Also calculate the intrinsic value of a share of Musical Chipmunks Co. today, For this problem, assume a market capitalization rate (k) (of 10%.
Ten years ago, Lucas Inc. earned $0.40 per share. Its earnings this year were $3.20. What was the growth rate in earnings per share (EPS) over the 10-year period? O a. 24.57% Ob. 20.81% O c. 25.99% O d. 23.11% O e. 80.00%

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