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Andrew [12]
3 years ago
7

The dividend policy of Berkshire Gardens Inc. can be represented by a gradual adjustment to a target dividend payout ratio. Last

year Berkshire had earnings per share of $3.00 and paid a dividend of $0.60 a share. This year it estimates earnings per share will be $4.00. Find its dividend per share for this year if it has a 25% target payout ratio and uses a five-year period to adjust its dividend.
Business
1 answer:
emmasim [6.3K]3 years ago
5 0

Answer:

$1

Explanation:

The computation of the dividend per share is shown below:

Given that

Earning per share for this year =4

Target Payout Ratio = 25%

Paid dividend per share = $0.60 per share

Based on the above information, the dividend per share is

= Earning per share  × Payout Ratio

= 4 × 25%

= 1

Therefore, Dividend per share is 1

We simply multiplied the earning per share with the payout ratio so that the dividend per share could come

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Production and sales estimates for June are as follows:
anastassius [24]

Answer:

Production= 13,000

Explanation:

Giving the following information:

Estimated inventory (units), June 1 18,500

Desired inventory (units), June 30 19,000

Expected sales volume (units):

Area X 3,000

Area Y 4,000

Area Z 5,500

Total= 12,500

To calculate the production for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 12,500 + 19,000 - 18,500

Production= 13,000

5 0
3 years ago
When several alternative investment proposals of the same amount are being considered, the one with the largest net present valu
Likurg_2 [28]

Answer:

The answer is c. present value index

Explanation:

Present value index is the ratio decided by dividing net present value of the project by its require initial net cash outflows.

Once having constraint on selecting investment with positive NPV to be made due to lack of fund, a firm's usually use Present value index for further decision making.

The investment with higher present value index shows that it generates more net cash flow or in other words, more efficient and requires less initial cash outflow, and thus usually be chosen over the other ones with lower present value index.

4 0
3 years ago
Harvey, a u.s. taxpayer, purchased 10 shares of mvc stock for $100 per share; one year later he sold the 10 shares for $130 a sh
Nonamiya [84]
<span>Harvey purchased 10 shares of mvc stock for = $100 per share
</span><span>one year later he sold the 10 shares for = $130 a share
</span>The price level increased in a year from = 140 to 147
<span>harvey's before-tax real capital gain =
</span><span>$1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax</span>
5 0
3 years ago
Opportunity cost is __
Mariulka [41]

Answer: A.

Explanation:

By definition, opportunity cost is the amount or value of something you gave up for another good.

For example: say you value sleeping in at $5 value going to class at $4. You decide to get up and go to class, the $4 value. Therefore, your opportunity cost is what you gave up (sleeping in) for another good/choice (going to class), is $5 since you valued sleeping in at that.

6 0
3 years ago
The board of directors of pilgrim company authorizes a $100,000 restriction of retained earnings for a future plant expansion. t
Yakvenalex [24]

Answer:

It will reduce the amount of dividiends it can pay.

Explanation:

As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.

The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.

6 0
3 years ago
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