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3 years ago

Evaluate Alternative Financing Plans

Business

1 answer:

bekas [8.4K]3 years ago

6 0

Answer:

What factors other than earnings per share should be considered in evaluating alternative financing plans?

b.Dividends reduce retained earnings.

Explanation:

Only option B is true, since retained earnings = previous balance + net income - dividends.

Option A is wrong because preferred stocks collect annual interests or preferred dividends.
Option C is wrong because common stockholders exercise control over the board of directors.
Option D is wrong because it is not necessary to pay dividends to common stockholders.
Option E is wrong because dividend expense reduces retained earnings, not net income.

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What does gross domestic product mean

yaroslaw [1]

GDP or gross domestic product is the total market value of the finished product and services produced in a country in a specific time period.

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3 years ago

Read 2 more answers

A laser surgical tool has a cost basis of $100,000 and a five-year depreciable life. The estimated SV of the laser is $20,000 at

VARVARA [1.3K]

Answer:

The annual depreciation under SL is $16000 per year.

Explanation:

The depreciation expense under Straight Line (SL) method remains constant throughout an asset's useful life. The depreciation under straight line method is calculated by calculating the value of the asset that is eligible for depreciation, which is its cost less the salvage value (SV) and dividing it by the asset's useful life.

The straight line depreciation per year = (Cost - SV) / estimated useful life

Annual depreciation under SL = (100000 - 20000) / 5 = $16000 per year

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3 years ago

You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. One annuity will pay $2,

MAVERICK [17]

Answer:

the annual payment for the second annuity is $2,130 paid at end of every year

Explanation:

We have following information for 1st annuity:

Rate: 6.5%

Payment (PMT): -$2,000, paid at beginning of every year

Tenor (Nper): 20 years

We use excel to calculate the present value of annuity = PV(rate,Nper,PMT,,1)

=PV(6.5%,20,-2000,,1) = $23,469

Then we calculate the payment for 2nd annuity = PMT(rate,Nper,PV,,0)

=PMT(6.5%,20,23469,,0) = -$2,130

Download xlsx

4 0

4 years ago

You expect KT Industries (KTI) will have earnings per share of $5 this year and expect that they will pay out $1.25 of these ear

sleet_krkn [62]

Answer:

9.75%

Explanation:

EPS = Earning per share = $5

DPS = Dividend per share $1.25

ROI = return on investment = 13%, or 0.13

RR = Retention rate = (EPS - DPS)/EPS = ($5 - $1.25)/$5 = 0.75, or 75%

Growth = RR * ROI = 13% * 75% = 9.75%

Therefore, the expected growth rate for KTI's dividend is closest to 9.75%

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4 years ago

The degree of compatibility between the firm's existing procedures and personnel skills and the requirements of the new system i

Vesna [10]

The answer is operational feasibility. This is a measurement as it is the one responsible for measuring how the problems are being solved by a proposed system that is made and in the same time, during scope definition—the opportunities are being taken advantage of as it is identified.

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4 years ago