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3 years ago

If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5?

Business

1 answer:

katen-ka-za [31]3 years ago

5 0

The dividend will be $4.015

<u>Explanation:</u>

The given data is: Initial dividend given is = $3 and growth rate given is = 6%

the following formula is used in order to calculate the dividend

dividend at time 5 = d0 multiply with (1+growth rate) power 5

= $3.00 multiply with (1+0.06) power 5

=>$3.00 multiply (1.33822558)

=>$4.015 (rounded to two decimals).

<u>Note :</u> The dividend is the amount that is paid by the company to its shareholders. The amount of dividend may vary from year to year depending upon the profitability level of the company that it earned during the year.

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The following incorrect income statement was prepared by the accountant of the Axel Corporation:

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Answer:

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Gross Profit $ 325,000

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Administrative expense 91,000

Operating Income 163,000

Non-Operating Income

Interest revenue 44,000

Gain on sale of investments 91,000

Interest expense (28,000)

Restructuring costs (67,000)

Income before taxes 203,000

Income tax expense (50,750)

Net Income 152,250

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Earnings per share $1.52

Explanation:

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then, the operating income therefore the interest and restructuring cost are not considered. Same goes for the gain on investment as aren't part of the business normal activities.

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3 years ago

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Answer:

27%

Explanation:

The actual rate being charge on these loans is the effective annual rate and the formula to calculate it is:

i=(1+(r/m))^m−1

i= effective annual rate

r= interest rate in decimal form=0.24

m=number of compounding periods per year= 52 (a year has 52 weeks).

i=(1+(0.24/52))^52-1

i=1.27-1

i=0.27

According to this, the answer is that the actual rate being charge on these loans is 27%.

6 0

3 years ago

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Answer:

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8 0

3 years ago

The 2018 income statement of Adrian Express reports sales of $20,510,000, cost of goods sold of $12,550,000, and net income of $

In-s [12.5K]

Answer:

1. Gross profit ratio= Gross Profit/ Sales *100

-Sales $ 20510,000

-Gross Profit = Sales - Cost of Goods Sold =20,510,000 - 12,550,000 = 7,960,000

Gross Profit Ratio= 7,960,000 / 20,510,000 * 100

= 38.81%

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Return on Equity: 1940000/4498,000 *100

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