25 The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $7 per share. Common stock (30,000 shares at $1 par) Capital in excess of par Retained earnings Total equity. The firm intends to first declare a 15 percent stock dividend and then pay a 20-cent cash dividend (which also causes a reduction of retained earnings). Show the capital section of the balance sheet after the first transaction and then after the second transaction. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Western Pipe Co. After Stock Dividend Common stock Capital in excess of par Retained earnings Total equity Western Pipe Co. After Cash Dividend Common stock Capital in excess of par Retained earnings Total equity $ 30,000 30,000 150,000 $ 210,000 $ 0

25 The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $7 per share. Common stock (30,000 shares at $1 par) Capital in excess of par Retained earnings Total equity. The firm intends to first declare a 15 percent stock dividend and then pay a 20-cent cash dividend (which also causes a reduction of retained earnings). Show the capital section of the balance sheet after the first transaction and then after the second transaction. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Western Pipe Co. After Stock Dividend Common stock Capital in excess of par Retained earnings Total equity Western Pipe Co. After Cash Dividend Common stock Capital in excess of par Retained earnings Total equity $ 30,000 30,000 150,000 $ 210,000 $ 0

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

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14 -The common stock of Permanent Assurance Corporation currently trades at $40.00 per share, which is approximates its intrinsic value. The company has announced plans to maintain its dividend next year at $1.20 per share. Your research indicates that historically, the firm's dividend payout ratio has averaged 50% while its return on equity averaged 9.0%. The book value of the shares is $25.00 and research shows there is relatively low variation in the firm's operations. You believe the firm's payout ratio and ROE should continue at their historic levels in the future over the long term. Enter your answers on the spreadsheet. Calculate the dividend yield of the firm's shares based on the announced dividend and rounded to 2 decimals: Dividend Yield:
Give typing answer with explanation and conclusion A share of common stock is paying $3.50 per share, but the corporation only pays 40% of its earnings as cash dividends. The anticipated growth of this stock is 8%. Find the value of this stock if an investor wants a yield of 10%. If the stock is selling for $45, what is the expected yield?
1. Barclays company presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If Barclay's equity cost of capital is 12%, then the value of a share of Barclay's stock is: $18.50 $16.50 $14.50 $12.50
Question 12?
A 59. Subject:- finance
I need part b c and d
7
17 - The common stock of Permanent Assurance Corporation currently trades at $40.00 per share, which is approximates its intrinsic value. The company has announced plans to maintain its dividend next year at $1.20 per share. Your research indicates that historically, the firm's dividend payout ratio has averaged 50% while its return on equity averaged 9.0%. The book value of the shares is $25.00 and research shows there is relatively low variation in the firm's operations. You believe the firm's payout ratio and ROE should continue at their historic levels in the future over the long term. Enter your answers on the spreadsheet Estimate the expected annual rate of return on the common over the long term based on the absolute approach and round to 2 decimals. Expected annual rate of return:

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