The increase in the retained earnings of Polycom Systems. Introduction: Retained Earnings: Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

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Answer 1

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Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

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Fab Corp had net income of $5.42/share last year, and it paid $2.04/share in dividends last year. A) What was its Dividend Payout Ratio last year? B) What was its Retention Rate last year? (Your answers should be a % carried to one place.) Dividend Payout Ratio = Dividends per share/Earnings per share x 100% = 2.04/5.42 = 0.37638376 = 37.64% Retention Rate: 1 – Dividend per share = 1-37.64% =52.36% Question I need help with (answered last question for context to this one) : If Fab Corp can earn 12% after tax on new investments, estimate how fast its net income can grow annually in the future. (Your answer should be a % carried to one place.)

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Answer 2

Question

Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

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Answer 3

Question

Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

Expert Solution & Answer

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Answer 4

Question

Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

Answer 6

Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

Answer 7

Chapter 18, Problem 4P

a.

Summary Introduction

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

Answer 8

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

Answer 9

b.

Summary Introduction

To calculate: The dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock $101.

Introduction:

Dividend Yield:

Also termed as dividend price ratio, the ratio that helps in comparing the annual dividend of a company to its share price is termed as dividend yield.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

The increase in the retained earnings of Polycom Systems. Introduction: Retained Earnings: Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

Solution Summary: The author calculates the dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock 101.

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To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

Want to see the full answer?

Chapter 18 Solutions

The increase in the retained earnings of Polycom Systems. Introduction: Retained Earnings: Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

Solution Summary: The author calculates the dividend yield of Polycom Systems, given the number of shares outstanding to be 100 million and price of stock 101.

Videos

To calculate: The increase in the retained earnings of Polycom Systems. Introduction: Retained Earnings: Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.

Want to see the full answer?

Chapter 18 Solutions

To calculate: The increase in the retained earnings of Polycom Systems.

Introduction:

Retained Earnings:

Retained earnings is that portion of the profits earned by a business which is not disbursed as dividends to the shareholders by the company so that it can be used for future investments.