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Gnesinka [82]
2 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]2 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 company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a
zvonat [6]

Answer:

$8,800

Explanation:

Stock dividend is a type of dividend which is paid in the form of additional shares in the company. It is declared as a ratio or percentage of outstanding shareholding in the company.

Stock Dividend = Numbers of outstanding shares x Stock Dividend percentage

Stock Dividend = 40,000 x 2% = 800 shares

Amount ot be transferred  = 800 x $11 = $8,800

5 0
3 years ago
List any 5 important of wetland​
antiseptic1488 [7]

Answer:

Wetlands are highly productive and biologically diverse systems that enhance water quality, control erosion, maintain stream flows, sequester carbon, and provide a home to at least one third of all threatened and endangered species. ... improve water quality. provide wildlife habitat. maintain ecosystem productivity.

8 0
3 years ago
D.v.g. (a minor) was injured in a one-car auto accident in hoover, alabama. the vehicle was covered by an insurance policy issue
diamong [38]

Answer:

Yes, the court ruled in favor of D.V.G.'s mother, because of the principle that contracts entered by minors are not void, but voidable, and that they do have an effect on the parties, but if voided, they cannot be enforced.

In this case, the minor died before the contract was ratified by the court, but the minor hadn't voided the contract, so it was still good at the moment of his death. The minor had the chance of either approving or rejecting the contract while still living, and decided not to revoke it.

Explanation:

NATIONWIDE MUTUAL INSURANCE COMPANY and State Farm Mutual Automobile Insurance Company v. Barbara Walker WOOD, as administratrix of the estate of D.V.G., a minor, deceased, and K.C.T., a minor, by and through Earnest T., his father and next friend.  1111486. Decided: February 22, 2013

As this Court has stated, <em>“ ‘[i]t is well settled by the authorities that infants are not liable on any of their contracts, except for necessaries. With the exception, all other contracts of infants, whether executory or executed, may be avoided or ratified at the election of the infant.’ ”</em>

The final ruling was:

<em>"Under Alabama law, an insurance company is bound to a settlement agreement negotiated on behalf of an injured minor, even if that minor dies before the scheduling of the court hearing that all parties agreed was necessary to obtain approval of the settlement agreement. In accordance with the parties' understanding, such a hearing is still required, and the minor's death does not render that hearing impossible. We thus answer in the affirmative the question certified to this Court."</em>

6 0
3 years ago
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest
katrin [286]

Answer:

The correct option is E,14

Explanation:

In using the two-day moving average to forecast for the next day sales, the previous two days sales are taken , summed to up and finally averaged(that is divided by 2)

Next day forecast=sum of previous two days sales figures/number of days

sum of previous two days  forecast=13+15=28

since the number of the days is 2 ,the 8 is divided by 2,28/2=14

Ultimately the next day forecast sales figure is 14 newspapers

Option A is wrong that is just considering of the two previous day, the same thing applies to option B.

Option C is the sum of previous two days sales without being divided

5 0
2 years ago
A music school has budgeted to purchase three musical instruments. they plan to purchase a piano costing $3,000, a guitar costin
daser333 [38]

Assuming the costs are normally distributed, then Z = (X-mu)/sigma

For piano Z= (3000-4000)/2500 = -0.4

For guitar Z= (550-500)/200 = 0.25

For drums set Z= (600-700)/100 = -1

Drums set < Piano < Guitar

Drums cost is lowest when compared to the instruments of same type .

Guitar cost is highest when compared to the instruments of same type.

8 0
3 years ago
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