A sensible payout policy:
A. sets dividends at a level just equal to the amount of new
equity that can be raised annually.
B. sets dividends based on net income, not cash flows.
C. consistently varies its target payout ratio on an annual
basis.
D. pays out all free cash flows over time.
E. cuts positive NPV investments, if needed, to steadily
increase its dividend.
A company just started to pay dividends. Its dividend payout
ratio is 30%. An analyst expected the company growing fast at the
following first two years at a dividend growth rate of 10% per
year. After that the company will slow down to an annual growth
rate of 5% forever. The company’s required rate of return is 8% per
annual. If the company’s last annual earning is $10 per share,
what’s the stock price the analyst should expect now?
A...
Labels and Amount
Descriptions
Cash paid for dividends
Cash paid for purchase of
equipment
Cash paid for purchase of land
Cash paid for purchase of treasury
stock
Cash payments for income taxes
Cash payments for merchandise
Cash payments for operating
expenses
Cash received from customers
Cash received from sale of common
stock
Cash received from sale of
investments
Change in cash
December 31, 20Y6
Depreciation
For the Year Ended December 31,
20Y6
Gain on sale of investments
Issuance of common...
Stock price = $40, dividend paid =$2, EPS = $4, so :
A. dividend payout ratio =5%
b dividend yield =5%
c. dividend yield =50%
d. P-E=20
e None of the above
As
u know.today’s stock price is 39,the dividend is 1.2,payout ratio
is 60,trailing 12M dividends per share is 1.4,next year the
dividend is 1.55,payout ratio is 60.2 calculate the trailing P/E
ratio and Forward P/E ratio.before you calculation?brifely explain
the difference between the two kinds of P/E ratio.and u know the
average industry average P/E ratio is 25,please compare this P/E
ratio ,what conclusion u can get?
1.A firm's current ratio is below the industry average; however,
the firm's quick ratio is above the industry average. These ratios
suggest that the firm
A.
has relatively more total current assets and even more inventory
than other firms in the industry
B.
has liquidity that is superior to the average firm in the
industry
C.
has relatively less total current assets and less inventory than
other firms in the industry
D.
is near technical insolvency
E.
is very efficient...
Magnolia Company's most recent dividend paid was $0.50, the
expected growth rate for future dividends is 2%. The firm’s stock
currently has a beta of 1.50 If the expected return is 8% for the
market and 3% for a 3-month T-bill, what is the price of Magnolia’s
common stock, assuming the growth rate will continue forever?
a.
$6.00
b.
$3.92
c.
$6.67
d.
$3.85
e.
$5.10
Terry’s Pets paid $5,000 in interest and $2,000 in dividends
last year. The cash coverage ratio is 2 and the depreciation
expense is $1000. What is the “times interest earned” ratio? Please
show your work and the formulas you used clearly.
Current and Quick RatiosThe Nelson Company has $1,209,000 in current assets and $465,000
in current liabilities. Its initial inventory level is $315,000,
and it will raise funds as additional notes payable and use them to
increase inventory. How much can Nelson's short-term debt (notes
payable) increase without pushing its current ratio below 2.0? Do
not round intermediate calculations. Round your answer to the
nearest dollar.$ What will be the firm's quick ratio after Nelson has raised the
maximum amount of short-term...
What is the payout policy of a company who is paying no
dividends for the last 5 years and the companies diluted earnings
per share for last 5 years is also zero or negative. We need to
determine payout policy only on the basis of the payout ratio, so
how can we describe the payout policy when there is no dividend, no
diluted earning per share?