Consider the following Year 1 information for Terrier Treats (T) Revenues $10,000 Total expenses including taxes $6,500 Total shares outstanding 100 Stock Price at the end of Year 1 $57.00 If Ts cost of equity is 17% and the current stock price is $50, what is the dividend payout ratio (express as a % rounded to 1 digit after the decimal: x.x%)

Consider the following Year 1 information for Terrier Treats (T) Revenues $10,000 Total expenses including taxes $6,500 Total shares outstanding 100 Stock Price at the end of Year 1 $57.00 If Ts cost of equity is 17% and the current stock price is $50, what is the dividend payout ratio (express as a % rounded to 1 digit after the decimal: x.x%)

Name: Question 20FLAG QUESTIONConsider the following Year 1 information for
Uploaded: 2022-11-22T13:58:24.000Z
Channel: Bartleby
Description: Question 20FLAG QUESTIONConsider the following Year 1 information for Terrier Treats (T)1213Revenues$10,00014Total expenses including taxes$6,50015Total shares outstanding10016Stock Price at the end of Year 1$57.00If T"s cost of equity is 17% and th

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.2.2MBA

See similar textbooks

Similar questions

ALTERNATIVE DIVIDEND POLICIES Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of 0.75 out of annual earnings per share of 2.25. Currently, Rubenstein Bros.' stock is selling for 12.50 per share. Adhering to the company's target capital structure, the firm has 10 million in total invested capital, of which 40% is funded by debt. Assume that the firm's book value of equity equals its market value. In past years, the firm has earned a return on equity (ROE) of 18%, which is expected to continue this year and into the foreseeable future. a. Based on this information, what long-run growth rate can the firm be expected to maintain? (Hint: g = Retention rate ROE.) b. What is the stock's required return? c. If the firm changed its dividend policy and paid an annual dividend of 1.50 per share, financial analysts would predict that the change in policy will have no effect on the firm's stock price or ROE. Therefore, what must be the firms new expected long-run growth rate and required return? d. Suppose instead that the firm has decided to proceed with its original plan of dis bursing 0.75 per share to shareholders, but the firm intends to do so in the form of a stock dividend rather than a cash dividend. The firm will allot new shares based on the current stock price of 12.50. In other words, for every 12.50 in dividends due to shareholders, a share of stock will be issued. How large will the stock dividend be relative to the firm's current market capitalist ion? (Hint. Remember that market capitalization = P0 number of shares outstanding.) e. If the plan in part d is implemented, how many new shares of stock will be issued, and by how much will the companys earnings per share be diluted?
Question 2Salsa Inc. estimates that this year’s earnings will be $75 million. There are 12 million sharesoutstanding at a price of $27.50 per share. Salsa had been following a 100% dividend payoutpolicy 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 Salsa 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,will Salsa Inc. be able to pay dividends as per the Residual Dividend Policy? Ifso, whatwill be the dividend pershare? Investorsrequire a 22.72% rate of return. Ignoretaxes.c) If Salsa Inc. shifts from a 100% payout policy to the residual dividend policy, whatimpact 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 thedividend policy decision would you have demonstrated through this…
P12-6Alternative dividend policies in the last 10 years, a company has had thanks to the earnings per share that are presented in the following table: Year Earnings per share2006 $ 4.002005 3.802004 3.202003 2.802002 3.202001 2.402000 1.201999 1.801998 -0.501997 0.25 to. If the company's dividend policy was based on a constant pay ratio of 40 percent for all years with positive earnings and 0% for years that did not achieve these gains, what would the annual dividend be for each year?b. If the company had a dividend payment of $ 1 per share, increasing $ 0.10 per share whenever the dividend payment decreased to less than 50 percent for two consecutive years, what annual dividend would it pay each year?
Subject: acounting
QUESTION 5.1 Use the attached information and answer this qiestion: Use the Gordon growth model to estimate the cost of the ordinary shares of AMN Limited from the attached information.
JM Computers Joseph's Transport Share price at the beginning of the year $20 $15 Share price at the end of the year $26 $18 Dividends received during the year $5 $2 Average Co-efficient of variation over the last three years 0.480 0.251 Total number of shares owned 10 000 5 000 Required: Calculate the return on investment per share for each investment. Calculate the total return earned the year for this entire shareholding of each company. Show the realised and unrealised portion of this total return. Explain how to use the co-efficient of variation in this investment decision. What share investment is recommended
Question 12 of 14 View Policies Current Attempt in Progress Blue Corporation earned net income of $402.040 in 2025 and had 95,000 shares of common stock outstanding throughout the year. Also outstanding all year was $850,000 of 5% bonds, which are convertible into 16,000 shares of common. Blue's tax rate is 30 percent. Compute Blue's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55) Diluted earnings per share < eTextbook and Media Save for Later $
Past paper question
Problem 2 The shareholders' equity of Tony Corporation revealed the following on June 30, 2018: Preference share, P100 par vale Preference share premium Ordinary share, P15 par value Ordinary share premium Ordinary share subscribed Retained earnings Notes payable Subscriptions receivable - ordinary P230,000 80,500 525,000 275,000 5,000 190,000 400,000 40,000 28. How much is the legal capital? 29. Using the data in problem #2, how much is the additional paid in capital? 30. Using the data in problem #2, how much is the total shareholders' equity? Problem 3 A corporation declared a 40% share dividend on its 60,000 shares of P20 par ordinary shares on a day when the market price is P50. 31. How much was debited to retained earnings on the date of declaration? 32. Using information in problem #3, what is the peso dividend per ordinary share? 33. Using information if problem #3 and assuming the share capital dividend declared is 4/40, what is the share premium from stock dividends?
Please type answer no write by hend.
Chapter 7: a. What is the current value of the company's stock? D₁ Ts 90,5 GL 9 Year Dividend Valuation of Stocks and Corporations PV of dividends and PV of horizon value V 1 $0.60 9.5% 4% Short-run g; during the first five years from 2005 to 2009. Long-run g; stardning from 2010 and all following years. 8% 0 $0.00 = Po 4% 1 $0.60 4% 2 4% I 3 4% 4 4% 5 8% 6 = Horizon value P51 = = D5 (1+gL) = D6 =rs - gL
Project # 2 FIN 345 The following information is provided to you about the performance of a particular stock investment that involved purchasing 1,000 shares of the stock on Jan 1 and selling the stock at the end of the last period: Event or $ Dividend Market Price buy 0.6 Date 1-Jan 15-Mar 30-May 15-Jun 0.4 15-Sep 0.4 15-Dec 0.4 31-Dec sell 3 for 11 Tax Rates are as follows: 100 102 100 35 36 34 37 • The capital gains rate is 20% • The investor's personal income tax rate on dividends is 15%. Create a spreadsheet to answer the following questions: 1. What is the unadjusted before-tax holding period rate of return? 2. What is the time-weighted before-tax rate of return? 3. What is the unadjusted after-tax holding period rate of return? 4. What is the time-weighted after-tax rate of return? Final Step: Calculate the difference between Question #4 (time-weighted after-tax rate of return) and Question #3 (unadjusted after-tax holding period rate of return).