Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions.
In this chapter's opening vignette, we discussed Apple's decision to establish a dividend payout policy in 2012 and its subsequent decisions to increase quarterly dividends and raise its repurchase program to $175 billion. Let's find out what has happened to Apple's (AAPL) dividend policy since the time of its original announcement. We can address this issue by relying on data provided on internet financial websites such as Yahoo! Finance, Morningstar.com, Google Finance, and MSN Money (www.msn.com/en-us/
2. Compare this information with other firms in the same industry. Has Apple behaved differently from its peers, or have there been industry-wide shifts? Google Finance provides data on related companies. Click “Related companies” on the left-hand side of your screen, and then click. “Add or remove columns” to see additional data, including dividend per share and dividend yield.
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Fundamentals of Financial Management (MindTap Course List)
- With the 2013 data still on the screen, click the Chart sheet tab. The chart presented shows the rates of return for Global Technology for the last five years. Answer the following questions: a. In 2009, the rate of return on assets exceeded the rate of return on common stockholders equity. Why might this have occurred? Be as specific as possible. b. Is the company better off in 2013 than it was in 2009? Why or why not? When the assignment is complete, close the file without saving it again. Worksheet. Modify the RATIOA4 worksheet to have it compute two additional activity ratios: number of days sales in receivables and number of days sales in merchandise inventory. Use the 2012 and 2013 data and assume a 365-day year. Write out the formulas for your ratios in the spaces provided. Days sales in receivables (average collection period) ________________ Days sales in inventory (average sales period) ________________ Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as RATIOAT. Chart. Using the RATIOA4 file, prepare a column chart that compares the acid test and current ratios for Global Technology for 2012 and 2013. Complete the Chart Tickler Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as RATIOA4. Print the chart.arrow_forwardUse the internet to find a publicly-held companys annual report. Locate the section that comments on the Stockholders Equity section of the financial reports. What additional insights are you able to learn by looking further into the commentary? Is there anything that surprised you or that you think is missing and could help you if you were deciding whether to invest $100,000 of your savings in this companys stock?arrow_forward5) The expected return in 2021 for stock of Thanks-For-The-Subsidies (TFS), an electric car manufacturer, is 8%. However, the CEO of TFS is addicted to Twitter, and his misjudged tweets cause a sudden decline of 17% in TFS's stock price. The tweets are the only unexpected news for TFS in 2021. What will be TFS's actual return in 2021? 一 Focus MacBook Pro Aarrow_forward
- Complete this question by entering your answers in the tabs below. S Req 1 Req 2 Req 3 Req 4 Req 5 Use the "Company" filter to the right of the candlestick chart to select "McDonald's" from the dropdown list. Now use the "Year" filter to select "2010" from the dropdown list to show stock prices for the entire year. Lastly, to drill down even furth use the "Month" filter to select "April." Over the time period shown, has McDonald's stock price increased or decreased over time? Increased Decreased Show lessarrow_forwardInvestors are more concerned with future dividends than historical dividends, so go to ESTIMATES and scroll down to the Consensus Estimates on the screen. Click on the Available Measures menu to toggle between earnings per share and dividends per share. How do analysts expect Apple's payout policy to behave in the future?arrow_forwardGive typing answer with explanation and conclusionarrow_forward
- When the price of oil fell in 2014 and 2015, ExxonMobil’s stock price dropped in expectation that earnings would also eventually fall. The P/E ratio was below 10 for some time. Go to finance.yahoo.com and type “XOM” into the “Quote Lookup” box. Scroll down and click on “ExxonMobil Corporation.” Click on “Profile” and write a one-paragraph description of the company’s activities. Return to the summary page and write down the company’s P/E ratio. Is it still relatively low (under 15)? Compare ExxonMobil to others in the industry (Chevron, BP, etc.) based on the P/E ratio and the PEG ratio (the P/E ratio divided by annual growth). Go back to the summary page. Is the stock up or down from the prior day? (See the number in parentheses next to the share price.) Click on the “Analysts” heading. What are the Average Earnings Estimate, Low Earnings Estimate, and High Earnings Estimate? How many analysts follow earnings?arrow_forwardSelect a publicly traded company that pays dividend. Go to www.yahoofinance.com and download the dividend data for the selected company and one of its competitors’ stock for the last 10 years (2012-2022). Use Excel to calculate annual dividends and the annual growth rate in dividends for the two companies. Questions: 1. Based on historical growth rates in dividend, will the forecasted growth in dividend be constant or non-constant? Explain.arrow_forward3. Excel Question. Download the monthly NASDAQ prices (1985-2023) from Brightspace.What is the simple arithmetic average return over this period?What would have been your annualized HPR if you invested (reinvesting the proceeds)over this period? Disregard the question above because I cant attach the entire excel file but i will attach a screenshot. Please just tell me and explain to me which column do i use to find the arithmetic average return for this period and also how to calculate the annualized HPR over this period. I am just confused which column and which numbers to use.arrow_forward
- Typically, people buy shares of stock in the expectation that the stock's price will increase, but it is also possible to make money by correctly anticipating that a stock's price will decline -- "selling short." Assume that you think that Volkswagen (VW) stock is going to decline in price over the next few months because of continuing uncertainty about why the company cheated on its emissions testing. A share of VW stock is currently selling for $50. You arrange to borrow 100 shares of VW stock for three months for a price of $1 per share. Three months later, sure enough, VW stock is selling for only $40 per share. You then purchase 100 shares at $40 each and return the 100 shares of VW stock that you borrowed. How much money did you make or lose? Earned $900 O Lost $1,100 Lost $1,000 Earned $1,100 Earned $1,000.arrow_forwardPlease correct answer and step by step solutionarrow_forward3. Excel Question. Download the monthly NASDAQ prices (1985-2023) from Brightspace.What is the simple arithmetic average return over this period?What would have been your annualized HPR if you invested (reinvesting the proceeds)over this period? Disregard the question, I just put it there for your reference. But how do i compute the arithmetic average return for this? Please just tell me how to compute it. I am not asking you to solve it. And also tell me how to compute the annualized HPR using the dataarrow_forward
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