Dividend Yield and Dividend Payout The following information is available for West Texas Waste Management Inc....

Dividend Yield and Dividend Payout
The following information is available for West Texas Waste Management Inc. (WTWM).

	Year 1	Year 2	Year 3
Dividends per share	$0.02	$0.04	$0.08
Earnings per share	1.07	1.28	1.41
Market price per share	16.00	19.00	21.00

Calculate WTWM's dividend payout ratio and dividend yield for Year 1 through Year 3.

Round all answers to one decimal place.

	Dividend Payout	Dividend Yield
Year 1	Answer%	Answer%
Year 2	Answer%	Answer%
Year 3	Answer%	Answer%

Which factor-dividends or earnings-seems to be driving WTWM's share price movement?

Answer

Expert Solution

ekkarill92 answered 1 year ago

Computing the Dividend Yield and the Dividend Payout Ratio The income statement, statement of retained earnings,...

Computing the Dividend Yield and the Dividend Payout Ratio The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes $703,450 13.2 Less: Income taxes (40%)* (281,380) 5.3 Net income...

Waste management in Canada. collect information

Walton, Inc. forecasts earnings next year of $4 per share.Walton, Inc. has a dividend payout...

Walton, Inc. forecasts earnings next year of $4 per share. Walton, Inc. has a dividend payout ratio of 30% and a required return of 15%. Its ROE is 17%. What is the company's PVGO based on the Gordon growth model?options:$17.14$12.04$38.71$-$4.86$-$14.19

The following information is taken from the records of West End Distributors Inc. for the month...

The following information is taken from the records of West End Distributors Inc. for the month ended May 31. Units Unit cost May 1 6 12 19 29 Purchase #1 Purchase #2 Purchase #3 Purchase #4 Purchase #5 100 200 125 350 150 $1 1 2 2 3 At May 31, 200 units remain unsold. For specific identification purposes, items on hand at May 31 were: 100 units of purchase #1 100 units of purchase #4 The other units were...

The following financial statements and information are available for Gibson Industries Inc.

The following financial statements and information are available for Gibson Industries Inc. Balance Sheets As of December 31 Year 3 Year 2 Assets Cash $ 161,500 $ 121,600 Accounts receivable 104,400 85,900 Inventory 187,400 173,000 Marketable securities (available for sale) 290,100 221,100 Equipment 667,600 ...

Given the following information, what is the percentage dividend yield between today and period 1? Today’s...

Given the following information, what is the percentage dividend yield between today and period 1? Today’s Dividend = $3.69 Expected Growth rate in dividends = 3.14 Discount Rate (Required return) = 8.53 Calculate your answer to two decimal places (e.g., 2.51)

Given the following information, what is the dividend yield between period 1 and period 2? Today’s...

Given the following information, what is the dividend yield between period 1 and period 2? Today’s Dividend = $2.32 Expected Growth rate in dividends = 4.03 Discount Rate (Required return) = 8.26 Calculate your answer to the nearest penny (e.g., 2.51)

1. Given the following information, what is the percentage dividend yield between today and period 1?...

1. Given the following information, what is the percentage dividend yield between today and period 1? Today’s Dividend = $3.43 Expected Growth rate in dividends = 2.97 Discount Rate (Required return) = 6.16 Calculate your answer to two decimal places (e.g., 2.51) 2. Given the information in the table, what is the price of the stock in YEAR 1? Today’s Dividend $4.47 Discount Rate 8.31% Growth rate in dividends 0 to 1 9.90% Growth rate in dividends 1 to 2...

Waste Management Inc. is analyzing an average-risk project, and the following data have been developed. Unit...

Waste Management Inc. is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price will increase with inflation. Fixed costs will also be constant, but variable costs will rise with inflation. The project should last for 3 years, and there will be no salvage value. This is just one project for the firm, so any losses can be used to offset gains on other firm projects. What is the project's...

Following information is available.

Following information is available.1) Using the Relative Purchasing Power Parity, forecast the future spot rate one year from now.2) Using the International Fisher Effect, forecast the future spot rate one year from now.

Question