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xxMikexx [17]
3 years ago
6

firm x projects an roe of 14% and it will maintain a pplowback ratio of .45 its earnings this year will be 3.60 per share invest

ors expect 11% rate of retrun on the stock what price do you expect form x shares to sell for in 2 years
Business
1 answer:
miskamm [114]3 years ago
3 0

Answer:

$47.61 per share

Explanation:

As we know that:

Current Price = Expected Dividend / (Required Return - Growth Rate)

Here

Expected Dividend is $1.98 <u>(Step1)</u>

Required Return is 11%

Growth Rate is 6.3%

By putting values, we have:

Current Price = $1.98 / (0.11 - 0.063)

Current Price = $42.13

The price of Stock in 2 years will be adjusted by growth rate:

Price of Stock in 2 years = Current Price * (1 + Growth Rate)^2

Here

Current Price of the stock is $42.13 per share

Growth rate = ROE * Plowback Ratio = 14% * 0.45 = 6.30%

By putting values, we have:

Price of Stock in 2 years = $42.13 * 1.063^2

Price of Stock in 2 years = $47.61 per share

So, you should expect the share to sell at $47.61 in 2 years

<u>Step 1: Find Expected Dividend</u>

Expected Dividend = Expected Earnings * Payout Ratio

Here

Expected Earnings is $3.6 per share

Payout Ratio = 1 - Plowback Ratio = 1 - 0.45 = 55%

By putting values in the above equation, we have:

Expected Dividend = $3.60 * 55%

Expected Dividend = $1.98 per Share

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Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 31,000 shares authorized, 15,6
notsponge [240]

Answer:

Dr Retained earnings  $6,200

Cr Dividends payable               $6,200

Explanation:

The shares entitled to dividends payment are those outstanding as at when dividends were declared,that is those shares in issue as at the date of dividend declaration,in essence only the outstanding shares of  12,400 are entitled to dividend payment of $0.50 per share.

The amount of dividend payment=$0.50*12,400=$6,200

The total dividends declared of $6,200 would be debited to retained earnings and credited to dividends payable until the payment date when the cash would be settled.

7 0
3 years ago
If you are a jury member, which of these are topics you might discuss with the other jurors during trial? (Select all that
xeze [42]

Answer:

Information you know from listening to testimony of the case.

Opinions you have from talking to other jurors during the trial.

Opinions you have from seeing evidence during the trial.

Explanation:

A jury member or a juror is a member of a society who is selected to form a body of people who are sworn to act as interpreters of a court case. The jury body consists of 12 citizens selected by the court to act as an extra hand in solving a case, while at the same time, looking through evidence and statements given by the people involved in the case.

A jury member is not allowed to go home or talk about the case until it gets resolved. Their main job is to talk within themselves about the case, <u>provide information from the testimony of the case</u>, and <u>share opinions with each other</u>. They can also <u>discuss their opinions after seeing the evidence presented in court</u>. Such topics are allowed to be discussed within themselves so as to act as a 'judging' body in the case.

7 0
3 years ago
Under the double-entry system of accounting, a debit is always a negative entry.
mrs_skeptik [129]

It is a false statement that a debit is always a negative entry under the double-entry system of accounting,

<h3>What is the double-entry system?</h3>

In accounting, this refers to the system for recording transactions based on recording increases and decreases in accounts so that debits equal credits.

Hence, the double-entry system requires that each transaction must be recorded in at least two different accounts.

Read more about double-entry system

brainly.com/question/2707498

#SPJ1

8 0
1 year ago
9) Napier Co. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds $1,000,
4vir4ik [10]

Answer:

($1,100,000)

Explanation:

Given that

Loans made to affiliated corporations = $1,400,000

Proceeds from sale of Equipment = $300,000

The computation of net cash provided (used) by investing activities is here below:-

Net cash provided(used) by investing activities = (Loans made to affiliated corporations) - Proceeds from sale of Equipment

= ($1,400,000) - $300,000

= ($1,100,000)

So, for computing the cash provided(used) by investing activities we simply applied the above formula.

7 0
3 years ago
How do value chains determine business processes and its​ structure??
KatRina [158]
Business processes implement value chains or portions of value chains. Each value chain is supported by one or more business process. The information systems are then implemented in order to make the operation <span>run smoothly and productively.</span>
5 0
3 years ago
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