1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AnnyKZ [126]
4 years ago
10

The firm has just declared a dividend of $1.09 per share for the current fiscal year. The firm has earnings per share of $2.11,

and 225,000 shares outstanding with a market price of $31.17 per share prior to the ex-dividend day. Ignore taxes. As a result of this dividend, the: A) the current dividend yield is 51.66% B) retained earnings will increase by $245,250. C) the current dividend payout ratio is 3.497% D) earnings per share will increase to $3.20. E) price-earnings ratio will be 14.26 ex-dividend.
Business
1 answer:
Anna007 [38]4 years ago
4 0

Answer: E) price-earnings ratio will be 14.26 ex-dividend.

Explanation:

Stock prices generally decrease in price by the price of the dividend on ex-dividend date.

This means that this stock will reduce to:

= 31.17 - 1.09

= $30.08

Price to Earnings ratio = Stock price/ Earnings per share

= 30.08/2.11

= $14.26

<em>Option E is correct. </em>

You might be interested in
Shore Company reports the following information regarding its production cost:Units produced 38,000 units
Oksanka [162]

Answer:

Production cost per unit $80.59

Explanation:

The computation of the production cost per unit using absorption costing is shown below:

Direct labor per unit  $28

Direct material per unit $29

Variable overhead per unit $20 ($760,000 ÷ 38,000 units)

Fixed overhead per unit $3.59 ($136,420 ÷ 38,000 units)

Production cost per unit $80.59

We simply added all the cost per unit so that the production cost per unit could come

4 0
3 years ago
M/b ratios typically exceed -select- , which means that investors are willing to pay more for stocks than their accounting book
skad [1K]

M/b ratios typically exceed one, which means that investors are willing to pay more for stocks than their accounting book values.

The Book value is the carrying amount of the company's assets minus the receivables (such as company liabilities) that exceed common stock. The term book value comes from the accounting practice of accounting for assets at their original costs.

The Book value of a company is total assets minus total liabilities. Total assets and total liabilities are included on the balance sheet of the annual and quarterly reports.

Book value refers to the value of the asset reported on the balance sheet, that is, the value of the asset after the accumulated depreciation has been recorded. Every company owns multiple assets. Therefore, every business also has a book value, which is the present value of the asset minus the liability or accrued debt.

Learn more about investors here: brainly.com/question/690070

#SPJ4

4 0
2 years ago
In the promotion element of the marketing mix, there are four main areas. Personal selling is direct spoken communication betwee
MAVERICK [17]

Answer: advertising, publicity, and personal selling- that stimulates interest, trail or purchase by final customers or others in the channel.

Explanation: Sales promotion are promotional activities used to stimulate consumers into purchasing a certain product. Sales promotion usually takes the form of giving discounted prices to customers, giving out extra incentive or gift items, freebies, voucher cards, coupon and other promotional offers which gives consumers extra material benefit when they purchase an item. Promotional offers are usually made during certain periods such as festive seasons, company anniversary or occasionally in other to drive sales or to wow customers.

7 0
3 years ago
Read 2 more answers
A $600,000 state lottery prize is spread evenly over twelve years ($50,000 a year) (Alternative 1), or you may take a lump distr
scZoUnD [109]

Answer and Explanation:

The computation of the present values of both alternatives is shown below:

For alternative one, the lump sum amount is

= Yearly payment × PVIFA factor at 8% for 12 years

= $50,000 × 7.5361

= $376,805

And, in the alternative 2, the lumpsum amount i.e. present value is $452,000

So as we can see that the alternative 2 is better as the lumspsum amount is high as compared with the alternative 1

5 0
3 years ago
The cost of equity is: Group of answer choices equal to the amount of asset turnover the weighted average cost of capital the in
san4es73 [151]

Answer:

the rate of return required by investors to incentivize them to invest in a company

Explanation:

In finance, the cost of equity is the Cost of Equity is the rate of return which an organization pays those that invested in equity. The organization uses cost of equity to check how attractive investments are.

It can be calculated by using the CAPM which is Capital Asset Pricing Model

6 0
3 years ago
Other questions:
  • Which sentence is an example of a core value?
    8·2 answers
  • You have just received your paycheck from Chick-Fil-A. You go to the bank to deposit your check in the amount of $120.00 to your
    5·1 answer
  • Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of
    14·1 answer
  • The goal of an mnc is to maximize the ________.
    6·1 answer
  • You borrow $230,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 25 years. Payments are made monthly.
    12·2 answers
  • "A customer buys pharmaceutical and utility stocks in his portfolio. This portfolio would be best characterized as:"
    6·1 answer
  • One major role of firms is to manage risk. Consumers do not want to pay for products of unknown quality or where the delivery da
    5·1 answer
  • John occasionally borrows the car of his friend, Sophie. Sophie has a PAP with liability limits of 100/300/50. John also has a P
    10·1 answer
  • An owner of a landscaping business received extra income in the previous month. She is considering either buying a new lawnmower
    10·1 answer
  • Which answer is true? <br> A.Bankruptcy ruins you credit for years
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!