Answer and Explanation:
The computation of the earnings and dividend per share is shown below;
But before that the net income should be determined
Sales 667000
Less: Costs 329000
Income before depreciation, interest and taxes 338000
Less: Depreciation expenses 73000
Operating income 265000
Less: Interest expenses 46500
Income before tax 218500
Less: Tax at 25% 54625
Net income 163875
a Earning per share = Net income ÷ Outstanding Common stock
= $163,875 ÷ 27200
= $6.02 per share
b Dividend per share = Dividend paid ÷ Outstanding Common stock
= $47000 ÷ 27200
= $1.73 per share
Answer:
A). Lower
B). Lower
C). Higher
I think so not sure of my answer
Answer:
$12.49
Explanation:
The computation of the expected current price is shown below:
But before that first we have to determine the current firm value which is
Current firm value = ($86 million ×1.10^1) ÷ 1.11^1 + ($86 million × 1.10^2) ÷ 1.11^2 + {($86 million × 1.10^2 × 1.04) ÷ (0.11 - 0.04)} ÷ 1.11^2
= $1,424.48 million
Now
Expected current share price is
= ($1,424.48 - $275 million + $100 million) ÷ 100 million shares outstanding
= $12.49
Answer:
Since the actual performance of the separate account is actually higher than the assumed interest by 1 %, this means that K will be paid 1% more on the value of his/her annuity account.
Explanation:
An annuity account is a policy holder's investment account where the insurance company invests on behalf of the annuitant. The insurance company determine an assumed interest rate that will cover for the insurance company costs and the profit margin that will be paid to the annuitant periodically.
Annuity interest help investors plan for retirement income since the annuitant knows how much they expect to receive upon maturity of the policy. Knowing how to calculate the value of an annuity can also help investors to consider other investment options.
An assumed interest rate that is determined by the insurance company. This is the value of the annuity account and the annuitant should not be paid below the value of this rate. The actual interest rate is the actual performance of the investment in the market. If this rate increases, then the value of payment to be made to the annuitant also increases.
In our case, the actual performance of the separate account is actually higher than the assumed interest by 1 % this means that K will be paid 1% more on the value of his/her annuity account.
Data Analysis - Process. Data Analysis is a process of collecting, transforming, cleaning, and modeling data with the goal of discovering the required information. The results so obtained are communicated, suggesting conclusions, and supporting decision-making.
