Angel Company would like to undertake a policy of paying out 45% of its income. Its latest net income was P1,250,000, and it had 225,000 shares outstanding. What dividend per share should Angel declare? * O P2.50 P2.14 O P2.38 P2.26 P2.63

Angel Company would like to undertake a policy of paying out 45% of its income. Its latest net income was P1,250,000, and it had 225,000 shares outstanding. What dividend per share should Angel declare? * O P2.50 P2.14 O P2.38 P2.26 P2.63

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 2)

A: To determine how many shares Company R needs to sell to raise $45,000,000, we need to consider the…

Q: Wellington Jumbo Crab's stock currently sells for $70 per share with 1 million shares outstanding.…

A: Issue of shares is one of the important source of financing being used by the business. It can be…

Q: Your company has earnings per share of $4.49. It has 1.621 million shares outstanding, each of which…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: a. How would a firm’s decision to pay out a higher percentage of its earnings as dividendsaffect…

A: Part (a): Answer: 1) Whether a company’s determination of a higher proportion of its earnings as a…

Q: Company X just paid (year 0) a dividend of $1.20. If you expect Company X's dividends to grow at 7%…

A: As per the constant growth rate model, the price of the bond can be found by considering the…

Q: Harper Industries has $700 million of common equity on its balance sheet; its stock price is $32 per…

A: Stockholders' equity, sometimes known as shareholders' equity, is the remaining stake in a company's…

Q: Does accounting dilution and/or market value dilution take place? Why?

A: Accounting DilutionAccounting dilution refers to a decrease in earnings per share (EPS) as a result…

Q: Q5: Corn, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and…

A: Part (a): Calculation of current price of stock: Answer: The current price of stock is $33.32

Q: Q3. Tortellini pl has basic earnings of £3 million for the year ended 30 November 2021 and a…

A: Diluted EPS = (Basic earnings + interest expense net of tax)/(Weighted average common share +…

Q: A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can…

A: As per the Constant Dividend Growth Model, Cost of Equity = [ D0 X (1+g) / (P0-F) ] + gwhereD0 =…

Q: Need help

A: To find the company's price-to-earnings (P/E) ratio, we need to use the following formula:P/E ratio…

Q: Judy's Boutique just paid an annual dividend of $2.41 on its common stock. The firm increases its…

A: Cost of equity = D0*(1+g) / Current price + growth rate g =growth rate D0 =dividend just paid

Q: Question 7: The balance sheet for Quinn Corp., is shown here in market value terms. There are 12,000…

A: Step 1: Answer and Explanation are already written in the answer box and the explanation is located…

Q: provide answer for q

A: Answer 1.To determine the earnings per share (EPS) after the stock repurchase, we need to follow…

Q: A firm just paid its first annual dividend of $0.12 a share. The firm plans to increase the dividend…

A: Variables in the question:D0=$0.12g=3.5% (per year indefinitely)Current stock price=$6.50Working…

Q: If you own 14,000 shares of stock of Brookfield Asset Management and it pays a dividend of $0 29 per…

A: A dividend is a payment made by a corporation to its shareholders, typically in the form of cash or…

Q: Today, one share of Smith & Wesson Brands Inc (ticker symbol: SWBI) sells for $46.60. SWBI is…

A: Current price of a stock is the present value of the future cash flows from the stock. The dividend…

Q: A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can…

A: Dividend paid = $3.00Growth rate = 1.8%Share price = $19.25Floatation cost = $1.00

Q: Rock Industries has hired the investment banking firm to help for going public. Rock and investment…

A: > Given data:>Value pre IPO = $75 million> Shares existing = 5 million> Shares to be…

Q: Stock Valuation and E million. The company's

A: Introduction: The term enterprise value would imply as the amount of money which would be required…

Q: If the company has 4 million shares outstanding, and these shares are trading at a price of $8.24…

A: The market price of a company's shares reflects how investors perceive the value and potential of…

Q: The company BETA is established with an initial capital of 100.000€ and each shareholder has a…

A: First, we need to determine the initial capital contribution of each shareholder. This is done by…

Q: Assume you are given the following abbreviated financial statement. ($ in millions) $150.0 $200.0…

A: There are different types of ratio like liquidity,activity,leverage ,profitability ratios.

Q: 51. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 1.50 0.85 1.59…

A: You have asked various questions which are multiple choice questions and our protocol and guidelines…

Q: P30 per share B.Dividends cannot legally be reinvested in the same company where they were earned…

A: 1) There is no fixed range of dividend payable by a company. It differs from on company to another.…

Q: Ovit, Inc. has preferred stock with a price of $20.26 and a dividend of $1.29 per year. What is its…

A: A dividend is a payment made by a corporation to its shareholders, typically in the form of cash or…

Q: The last paid dividend is $2 for a share of ordinary shares that is currently selling for $20. What…

A: Information Provided: Dividend paid = $2 Growth rate = 8% Price of share = $20

Q: A stock is bought for $21.00 and sold for $27.50 one year later, immediately after it has paid a…

A: Capital gain only considers the change in value of share price. Capital gain rate = Selling…

Q: A firm has the balance sheet accounts, common stock, and paid-in capital in excess of par, with…

A: When the shares are sold for more than its face value, the excess is credit to "Paid in capital in…

Q: Please give true answer

A: Approach to solving the question: Step 1: Calculate Earnings Per Share (EPS)Earnings Per Share (EPS)…

Q: Hello There Firm's stock sells for $20 per share, its last dividend (Do) was $1.00, its growth rate…

A: Price of stock = p = $20 Current dividend = d0 = $1 Growth rate = g = 6% Flotation cost = f = 20%

Q: sidering the following two plans. The values represent dividends per share. la doing a five-year…

A: The present value of dividends represents the current value of future series of dividends discounted…

Q: Smith Enterprises Smith Enterprises recently conducted an IPO. In this, Smith received $14 per share…

A: Offering price per share =$16 First day price per share = $19Return on investment = (19-16)/16 * 100…

Question

Angel Company would like to
undertake a policy of paying
out 45% of its income. Its
latest net income was
P1,250,000, and it had
225,000 shares outstanding.
What dividend per share
should Angel declare? *
P2.50
P2.14
P2.38
O P2.26
O P2.63

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

q6- You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $13.80 and that the value of dividends paid over the past year was $1.41. You paid $8.47 for the share exactly one year ago. What would you expect the dividend yield to be according to Bloomberg? a. 62.93% b. 10.22% c. 79.57% d. 16.65%
Need answer the question
In a recent IPO, a social network company issued 4,000,000 new shares. The initial price to the public was £22.00 per share. The final first-day closing price was £52.37. If the investment bankers retained £1.45 per share as fees, what was the net proceeds to the social network firm and its market capitalisation? Select one: O a. Net proceeds: £93,800,000; Market capitalisation: £203,680,000 O b. Net proceeds: £88,000,000; Market capitalisation: £88,000,000 O c. Net proceeds: £82,200,000; Market capitalisation: £209,480,000 Od. Net proceeds: £83,200,000; Market capitalisation: £219,480,000
Gnomes R Us just paid a dividend of $1.89 per share. The company has a dividend payout ratio of 65 percent. If the PE ratio is 16.8 times, what is the stock price? Multiple Choice $20.64 $31.75 $48.85 $90.72 $69.78
Need help with this question
6. Matilda Industries pays a dividend of £2.10 per share and is expected to pay this amount indefinitely. If Matilda's cost of equity capital is 9%, which of the following would be closest to Matilda's share price? A. £14.00 B. £18.66 C. £23.33 D. £29.16
Gamma Corporation just paid a dividend of $3.00 per share on its common stock. Dividends are expected to grow at an annual rate of 8% for next two years and then at 3% thereafter. If you want minimum return of 10%, what is the most that you would be willing to pay for a share of Gamma Corporation today? o earn a O A. $51.29 O B. $49.99 O C. $48.39 O D. $53.24
10. Consider the following price and dividend data for Quicksilver Inc.: Year Price (£) Dividend (£) 0 10 1 0.14 2 0.14 3 14 0.14 Assume that you purchased Quicksilver's share in year 0 and sold it at the end of year 3. Your annual rate of return for holding this share is closest to ________. A. 8% B. 14% C. 20% D. 19%
Please help
A firm has 7,000 outstanding shares with current value of 10£ per share. Planned dividend is £5 per share. What is the ex-dividend share price? How much is the share price if the company decides to use the cash it had originally earmarked for dividend for a share repurchase instead? A. £5, £10 B. £10, £5 C. £8, £10 D. £2, £12 ( explain well with step by step answer ).
I want to answer this question
7. Determine the P/E ratio of the company ZYX if you know that the number of company's outstanding shares is 18,000,000. The current market price of the company corresponds to 588.5 per share. The company's intrinsic value is 654 per share. The expected return for investors is 8.7 %. The dividend amounts to 62.4. The EBIT in the given year corresponded to the amount of 481,530,000. a. 24.4 b. 26.6 c. 22 d. 19.7 e. 25 8. Consider the spot rate of 24.36 CZC/EUR. If we assume a payment for goods of 5.000 EUR in two months and the spot rate at that time will be 24.95 CZC/EUR. For hedging purposes, it is possible to arrange a forward on the exchange rate with a fixation of 24.7 CZC/EUR. If the company were to import goods. closing a forward would mean a profit/loss in the amount of: a. 1.250 EUR gain b. 1,700 CZC loss c. 2,950 EUR gain d. 1,250 CZC gain e. 1,250 CZC loss