Answer:
$5 per share
Explanation:
The formula and computation of the earning per share are shown below:
= (Net income - preference dividend) ÷ (Outstanding Number of shares)
= ($550,000 - $50,000) ÷ (100,000 shares)
= ($500,000) ÷ (100,000 shares)
= $5 per share
We do not consider the common stock dividend and the preference share outstanding because this is not relevant for the computation part.
Answer:
17%
Explanation:
The actual return which stockholder receives on the average common equity is return on common stockholder's equity.
Return on Common Stockholder Equity = (Net Income - Preferred dividend) / Average common stockholders equity
Return on Common Stockholder Equity = ($298,000 - (10,000 x $100 x 6%) / ( ( $1,200,000 + $1,600,000 ) / 2 )
Return on Common Stockholder Equity = ($298,000 - $60,000) / $1,400,000
Return on Common Stockholder Equity = 0.17 = 17%
Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
Answer:
A. will not balance desired outcomes with performance drivers of those outcomes.
Explanation:
The balance score card is the score card that reflects the performance level from which the organisation will be able to take the actions, decisions appropriately.
If the company uses the few balanced scorecard that would leads to not balancing the desired outcomes with its performance drivers that means they are not able to matched with each other outcomes or results
When technology is progressing rapidly, firms are more likely to;
commit themselves to fixed assets.
focus on developing the necessary skills in-house.
