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Gnesinka [82]
3 years ago
5

Franklin Electric is presently generating earnings available to common shareholders of​ $7.25 per share. The​ firm's income tax

rate is​ 40%. Franklin is paying a dividend to the preferred shareholders of​ $2.10 per share. The​ firm's dividend payout ratio on common stock is​ 20%. What is the amount per share that Franklin will pay in dividends to common​ shareholders?
Business
1 answer:
Sphinxa [80]3 years ago
3 0

Answer:

$1.45

Explanation:

First of all we need to know what is earnings available to common shareholders (EACS).

EACS is the part of earnings which is available to common shareholders after deducting preference dividend from net income after taxes.

We can understand the as follows

Net Profit after taxes $ xxxx

Less: Preference dividend (xxxx)

Earnings available to.common shareholders xxxx

From this amount is we divide number of common stocks / shares, we will get Earnings Per Share (EPS)

EPS = Earnings available to equity shareholders / number of common stock shares

Dividend Payout Ration to common stock (given) = 20%

It means the comapny is paying 20% of EPS to common stock holders and 80% of EPS is tthe retained earnings of the company

Hence dividend to common stockholder = Earnings available.to common shareholders × dividend payout ratio

= $7.25 × 20%

= $1.45

$1.45 is the dividend which company pay to common shareholders

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A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch. He doesn't know how to find a dealer and d
Stells [14]

Answer:Advertise in the local newspaper.

Explanation:The fact that,he lacks basic information on how to get the moped scooter does not mean there are no moped scooter vendors within his locality.Internet access notwithstanding, he can still get a vendor around or withing his locality.The local newspaper is sure to do the job being of the oldest marketing medium.

6 0
3 years ago
Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is
ahrayia [7]

Answer:

The Customer Lifetime Value of firm A amounts to $41,405. Hence, the correct option is 3

Explanation:

The formula to compute the Customer Lifetime Value of firm A is:

Customer Lifetime Value of firm A = Average annual sales × Average Profit Margin × Uniform series PW ( Present Worth) factor

= $55,000 × 15% × 5.0188

= $41,405

where

Average annual sales is $55,000

Average Profit Margin is 15%

We need to find out this:

The formula to compute this:

Uniform series PW factor = ( 1 + i%) ^ n - 1 / i % × ( 1 + i%) ^ n

                                          = ( 1 + 15%) ^ 10 - 1 / 15% × ( 1 + 15%) ^ 10

                                          = (1.15 ^ 10 -1) / (0.15 × 1.15 ^10)

                                          = 5.0188

3 0
3 years ago
Lois is considering buying a new bicycle for $200. it has a 20hance of breaking down in the next year. what is the expected valu
denis23 [38]

The expected value in terms of repair cost for this purchase is $40.

Repair cost manner fees and expenses are fairly essential or acceptable due to normal wear and tear, periodic replacement, vandalism, damage, or destruction of any part of the ability property, and shall now not encompass operating fees.

First, bring together the entire listing of substances wished, and report a high and occasional price estimate for each. as soon as it really is carried out, add each column of numbers to get the whole cost for each high and coffee. Then upload the two totals, after which divide with the aid of to get the common price.

Repair cost and substitute mean all non-routine, non-repetitive activities, repairs or substitutes of systems, equipment, or device required for continuity of operations, safety, and running overall performance this is vital to prevent or correct a failure of the Pelletier Facility and which aren't protected as a component.

Learn more about repair costs here brainly.com/question/22932657

#SPJ4

4 0
1 year ago
A labor crew for placing concrete consists of one labor foreman at $26.09 per hour, one cement finisher at $29.30 per hour, 6 la
muminat

Answer:

Total cost per day= $1,892.72

Explanation:

Giving the following information:

Foreman= 26.09 per hour

Cement finisher= 29.3 per hour

Labor= 24.45 per hour

Equipment operator= 34.5 per hour

<u>To calculate the total cost for one day of work, we need to multiply the hourly rate by the total number of hours.</u>

<u></u>

Total cost per day= 26.09*8 + 29.3*8 + (24.45*6)*8 + 34.5*8

Total cost per day= $1,892.72

6 0
2 years ago
Suppose you had $1000 to invest on September 30, 2016 and you had the option of choosing either AAPL or RRD or a combination of
beks73 [17]

Answer:

I would invest the whole $1000 in AAPL,because y% gives zero return while x% gives $250 in return.

Explanation:

First and foremost we need to formulate equations based on the return percentages given:

when x%=5%

y=95%

0.05x+0.95y=$1000 eqn 1

when x%=80%

y=20%

0.8X+0.2y=$1000 eqn 2

multiply eqn 1 by 16 gives

0.8x+15.2y=$1000

0.8x+0.2y=$1000

deduct both equations

15y=0

y=0/15

y=0

substitute the value of y in eqn 2

0.8x+0.2y=$1000

0.8x+0.2(0)=1000

0.8x=1000

x=1000/8

x=$1250(interest plus principal)

interest =$250

principal=$1000

5 0
3 years ago
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