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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a) Newdeal Inc. follows a policy of distributing 45% of its profits and investing the rest in the operations of the company. The average profitability of its assets is 20% and the current year dividend per face value of 1₺ is 30%. Compute the intrinsic value of a stock of this company for an investor whose minimum required rate of return is 25%. b) Compute the value of this stock one year later under the same assumptions.
PI Equity (PIE) invested in a biotech company (BIO) with $5 million of EBITDA. PIE paid $35 million with 30% financed at a rate of 6% over three years. Assume BIO's EBITDA grows by 10% each year and they exit after three years at a multiple of 12 times EBITDA. What is the return on invested assets, without regard to any tax benefits attributable to interest or amortization? O 2.8x. O 3.5x. 3.7x. O 4.0x.
Dalmatian Co. is currently paying a dividend of P2.20 per share. The dividends are expected to grow at 25% per year for the next four years and then grow 5% per year thereafter. Calculate the expected dividend in year 6. A. P5.37 B. P2.95 C. P5.92 D. P8.39
Easttown Productions just paid an annual dividend of $7.85 per share. Future dividends are expected to increase by 2 percent annually. What is one share of this stock worth at a required rate of return of 12.25 percent? A. $78.12 B. $100.88 C. $95.02 D. $76.59 E. $64.08
A company just issued $453000 of perpetual 5% debt and used the proceeds to repurchase stock. The company expects to generate 107000 of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm's unlevered cost of capital is 14% and the tax rate is 25%. Use APV method to calculate the value of the company with leverage. Your Answer: Answer
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 ?
6. Cost of common stock or retained earnings. XYZ Corporation just paid a dividend of $1.00 for every share of its common stock and the management sees the dividend can grow 5% a year forever. The stock currently sells for $21. What is the cost of the stock or cost of retained earnings? 10%
b. ABC Inc. finances its operations with 40 percent debt and 60 percent equity. Its net income is $30 million and it has a dividend payout ratio of 30%. Its capital budget is B = $100 million this year. The annual yield on the company's debt is 7% and the company's tax rate is T = 30%. The company's common stock trades at Po = $100 per share, and its current dividend of Do = $4 per share is expected to grow at a constant rate of g = 5% a year. The floatation cost of external equity, if issued, is F = 1.5% of the dollar amount issued. What is the company's weighted average cost of capital?
Sub : FinancePls answer very fast.I ll upvote. Thank You Smashed Pumpkins Company paid $136 in dividends and $568 in interest over the past year. The company increased retained earnings by $474 and had accounts payable of $594. Sales for the year were $16,265 and depreciation was $720. The tax rate was 21 percent. What was the company's EBIT? Options: $984 $1,333 $1,340 $6,181 $1,823
Reese bought Acme, Inc. for $40 per share two years ago. Today, Acme is trading at $72 per share. What is the annualized return for Reese? O 80.00%. O 34.16%. 40.00%. 28.75%
Barnes Group Inc. (ticker symbol: B) pays an annual dividend that grows by 5% every year. If investors require a return of 8% to hold Barnes stock (which currently sells for $21 per share) then the last dividend the firm paid was: a. $1.1 b. $0.6 c. $0.23 d. $0.53 e. $0.73

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