ABC Co. paid out one-half of its 1994 earnings by dividends. Its earnings increased by 20% and the amounts of its dividends increased by 15% in 1995. ABC's dividend payout ratio for 1995 was?
ABC Co. paid out one-half of its 1994 earnings by dividends. Its earnings increased by 20% and the amounts of its dividends increased by 15% in 1995. ABC's dividend payout ratio for 1995 was?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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ABC Co. paid out one-half of its 1994 earnings by dividends. Its earnings increased by 20% and the amounts of its dividends increased by 15% in 1995. ABC's dividend payout ratio for 1995 was?
ABC Company's bonds have a provision which stipulates that the ratio of senior debt to total assets will never rise above 45%. The company is at the limit of that ratio and it wishes to issue still another $25 million in senior debt. How much additional equity capital must it raise to comply with this restrictive provision?
A. 55.56 Million
B. 30.56 Million
C. 20.45 Million
D. 11.25 Million
ABC has annual sales of $365 million. The company's days sales
outstanding (calculated on a 365-day basis) is 50, which is well above the industry average of 35. The company has $200 million in current assets, $150 million in current liabilities, and $75 million in inventories. The company's goal is to reduce its DO to the industry average without reducing sales. Cash freed up would be used to repurchase common stock. What will be the current ratio if the company accomplishes its goal?
A. 1.23
B. 1.33
C. 0.73
D. 1.43
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