Answer:
a. Firm M probably has a higher dividend payout ratio than Firm N.
Explanation:
The dividend payout ratio is commonly referred to a portion of the net income of the company which is paid to the various shareholders in dividends. Therefore, if we consider the statements made in the question, Firm M has a higher annual net income while the annual net income of Firm N is fluctuating, we can conclude that the dividend payout ratio of Firm M is more than that of Firm N.
Answer:
different time horizon
Explanation:
The time horizon is a certain time when a planned event/process expected to be finished. A different department can have different considerations/priorities when making the ideal time horizon. In this case, the marketing team wants the product released faster(in the first quarter) to capture market share as the main consideration. But the production team who responsible for the product quality wants more time to develop the product.
Answer:
37.25%
Explanation:
Average total common stockholders' equity:
= (Beginning common stockholders' equity + Ending common stockholders' equity) ÷ 2
= ($530,000 + $490,000) ÷ 2
= $510,000
Return on Equity = Net income ÷ Average total common stockholders' equity
= $190,000 ÷ $510,000
= 0.3725
= 37.25%
Answer: $16.69
Explanation:
Using the Dividend growth model, the value is:
= [Dividend 1/ (1 + required return)] + [Dividend 2/ (1 + required return)²] + [Terminal value / (1 + required return)²]
Terminal value = Dividend after 2 years / (required return - growth)
= 2.50/ (14.5% + 0%)
= $17.24
Dividend 1 = 3.60 * ( 1 -30%) Dividend 2 = 2.52 * ( 1 -30%)
= $2.52 = $1.76
Market value = (2.52 / 1.145) + (1.76 / 1.145²) + (17.24/1.145²)
= $16.69
The answer is<u> "Supply will decrease."</u>
A storm that crushed the wheat products would make the cost of that grain to rise. Given that grains are a critical contribution to the make of oat, the ascent in the cost of grain speaks to an expansion in input costs for oat. This is spoken to in the grain advertise as a leftward move of the supply bend and no adjustment in the demand curve.
