Questions
Two companies A and B are in the same industry with identical earnings per share for...

  1. Two companies A and B are in the same industry with identical earnings per share for the last five years. Company A has a policy of paying 40% of earnings as dividends while company B pays a constant amount of dividends per share is lower than that of B. The following is data on earnings, dividend and market price for the two companies.

Company A

Year

EPS

DPS

Market price

2006

4

1.6

12

2007

1.5

0.6

8.5

2008

5

2.0

13.5

2009

4

1.6

1.5

2010

8

3.2

14.5

Company B

Year

EPS

DPS

Market Price

2006

4

1.8

13.50

2007

1.50

1.8

12.50

2008

5

1.8

12.50

2009

4

1.8

12.50

2010

8

1.8

15.00

Required:

  1. Payout ratio
  2. Divided yield
  3. Earning yield

In: Finance

Use the information about​ Billy's Burgers to answer the following​ question(s): ​ Billy's Burgers Figures in​...

Use the information about​ Billy's Burgers to answer the following​ question(s): ​ Billy's Burgers Figures in​ $ millions Income Statement 2010 Balance Sheet 2010 Net Sales 246.0 Assets Costs exc. Dep. 187.0 Cash 8.0 EBITDA 59.0 Accts. Rec. 21.0 Depreciation 17.2 Inventories 23.0 EBIT 41.8 Total Current Assets 52.0 Interest 12.0 Net PP​&E 145.0 Pretax Income 29.8 Total Assets 197.0 Taxes 10.4 Net Income 19.4 Liabilities and Equity Accts. Payable 18.0 LongminusTerm Debt 82.0 Total Liabilities 100.0 Total​ Stockholders' Equity 97.0 Total Liabilities and Equity 197.0 Using the percent of sales​ method and assuming​ 20% growth in sales and no change in interest​ expense, estimate​ Billy's Burgers' Net Income for 2011...... Please show all work!

In: Finance

Develop a minimum 700-word analysis of inflation. Include the following: Choose a product or service you...

Develop a minimum 700-word analysis of inflation. Include the following:

  • Choose a product or service you currently consume/use, such as apparel or educational services, that is included in the CPI's "market basket." Find the annual CPI index numbers for your chosen good or service for the years 1995, 2005, 2010, and 2015. Enter those index numbers in an Excel spreadsheet and calculate the percent change (inflation rates) in those index numbers from 1995 to 2005, from 1995 to 2010, and from 1995 to 2015.  
  • Analyze the trends in overall inflation over the last five years and whether your income has kept pace with inflation. How has inflation over the last five years affected you and/or your family?
  • Discuss how a business manager, such as a human resources manager, might use CPI statistics.

In: Economics

According to the 2010 US Census, the average number of residents per housing unit for the...

According to the 2010 US Census, the average number of residents per housing

unit for the n=87 counties in Minnesota was 2.10, and the standard deviation

was 0.38. Test whether the true mean number of residents per housing unit

in Minnesota in 2010 is less than the national value of 2.34 at the level

α

= 0

.

05.

a. Show all five steps of this test.

b. What type of error could we be making in this context?

c. What is the minimum average number of residents per household needed

in order to fail to reject H0? Assume the sample standard deviation is the same.

d. Suppose the true number of residents per household in Minnesota is normally

distributed with a mean of 2.0 and a standard deviation of 0.4. Suppose we reject

the null hypothesis if the sample means the number of residents is less than 2.27. What

is the probability of making a type II error?

In: Math

The flowing numbers come from an equity statement for fiscal year 2011 (in millions): Shareholders’ equity...

The flowing numbers come from an equity statement for fiscal year 2011 (in millions):

Shareholders’ equity May 31, 2010 $2,700

Issue of shares for exercise of stock options 405

Repurchase of shares (132)

Net income 467

Unrealized loss on debt securities (23)

Tax benefit from the exercise of stock options 70

Common dividends paid (250)

Preferred dividends paid (10)

Shareholders’ equity May 31, 2011 3,227

The firm’s tax rate is 35 percent. Shareholders’ equity at May 31, 2010 includes $120 million in preferred stock.

a. Calculate the loss to common shareholders from the exercise of stock options.

b. Present a reformulated statement of common shareholders’ equity that identifies comprehensive income and separates it from net payout to shareholders.

c. What was the return on common equity (ROCE) for the year? (Use beginning equity in this calculation.)

In: Accounting

Answer the following question in IRAC form: Hank worked for HGC Corporation as the Treasurer. Before...

Answer the following question in IRAC form:

Hank worked for HGC Corporation as the Treasurer. Before leaving the Corporation Hank embezzled $500,000 from HGC. Thus far Clarence, the Chairman of the Board and Hank's uncle, has kept the Board from "going after" Hank. Only a year remains in the statute of limitations before HGC can not legally pursue action against Hank.

A) Allison is a shareholder. She and other shareholders come to you for advice as to what they may do to file against Hank. What do you advise? Explain.

In: Accounting

Vitamin C (ascorbic acid) is an example of iodimetric determination, so based on the rules that...

Vitamin C (ascorbic acid) is an example of iodimetric determination, so based on the rules that

“in iodimetry (titration with I3), starch can be added at the beginning of the titration. The first drop of excess I3 after the equivalence point causes the solution to turn dark blue. In iodometry (titration of I3), I3 is present throughout the reaction up to the equivalence point. Starch should not be added until immediately before the equivalence point.”

However, why starch is still not added until just before the end point when we were doing Vitamin C experiment?

In: Chemistry

Suppose labor demand for low-skilled workers in the United States is w = 24 - 0.1L...

Suppose labor demand for low-skilled workers in the United States is w = 24 - 0.1L where L is the number of workers (in millions) and w is the hourly wage. There are 120 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 20 million low-skilled immigrants would enter the U.S. and supply labor inelastically.

Draw a clearly labeled graph showing the equilibrium before immigration and the effect of opening the borders. (The equilibrium wage and employment level should be labeled both before and after immigration.)

In: Economics

You are a summer intern for a large, reputable sports beverage company. The company is the...

You are a summer intern for a large, reputable sports beverage company. The company is the primary sponsor of an Olympic-distance triathlon in August in Iowa. The company will have a huge exhibit booth at the prerace meal the night before the race, and before, during, and after the event on race day. Your responsibility as an intern is to create a sports nutrition table display to be the centerpiece of the company’s main exhibit area. Describe in detail what the table set-up will look like, the information and activities you will have available for participants, and the main emphasis of your educational message for this athlete population.

In: Nursing

A 7400 kg rocket blasts off vertically from the launch pad with a constant upward acceleration...

A 7400 kg rocket blasts off vertically from the launch pad with a constant upward acceleration of 2.15 m/s2 and feels no appreciable air resistance. When it has reached a height of 550 m , its engines suddenly fail so that the only force acting on it is now gravity. a)What is the maximum height this rocket will reach above the launch pad? b)How much time after engine failure will elapse before the rocket comes crashing down to the launch pad? c)How fast will it be moving just before it crashes?

In: Physics