Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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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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Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Sales $ 125 $ 145 $ 165 Q4 $ 195 Sales for the first quarter of the following year are projected at $140 million. Accounts receivable at the beginning of the year were $55 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 20 percent of sales. Interest and dividends are $10 million per quarter. Wildcat plans a major capital outlay in the second quarter of $81 million. Finally, the company started the year with a cash balance of $70 million and wishes to maintain a $30 million minimum balance. a. Complete the following cash budget for Wildcat, Incorporated. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions,…
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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License