<span>The company has issued only 510,000 shares out of authorized 600,000 common stocks. As we know that dividend is paid only on issued shared, and treasury stocks do not get any dividend.
So the total amount of dividend that will be paid = 0.65 * 510,000 = $331,500</span>
Answer:
A. $54
B. 55.62
C. $70.46
Explanation:
The formula for calculating compound interest is
FV = P (1 + r ) ^n
FV = Future value
P = Present value
R = interest rate
N = number of years
A. $1,800 (1.03) = $1854
Interest rate = $1854 -$1,800 = $54
B. $1,800 (1.03)^2 = $1,909.62
Interest rate = $1,909.62 - $1854 = $55.62
C. $1,800 (1.03)^10 = $2,419.05
To service the interest rate, we have to determine the future value in year 9
$1,800 (1.03)^9 = $2,348.59
Interest rate = $2,419.05 - $2,348.59 = $70.46
I hope my answer helps you
Answer:
2.41%
Explanation:
The difference between the two firms' ROEs is shown below:-
Particulars Firm HD Firm LD
Assets $200 Debt ratio 50% Debt ratio 30%
EBIT $40 Interest rate 12% Interest rate 10%
Tax rate 35%
Debt $100 $60
Interest $12 $6
($100 × 12%) ($60 × 10%)
Taxable income $28 $36
($40- $12) ($40 - $6)
Net income $18.2 $22.1
$28 × (1 - 0.35) $36 × (1 - 0.35)
Equity $100 $140
($200 - $100) ($200 - $60)
ROE 18.2% 15.79%
($18.2 ÷ $100) ($22.1 ÷ $140)
Taxable income = EBIT - Interest
Net income = Income - Taxable income
Equity = Assets - Debt
ROE = Net income ÷ Equity
Difference in ROE = ROE Firm HD - ROE Firm LD
= 18.2% - 15.79%
= 2.41%
So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.
Answer: 1.66
Explanation:
Based on the information given in the question, the beta of the stock will be calculated as follows:
Expected return = 16.2%
Market return = 11.2%
Inflation rate = 3.1%
Risk-free rate of return = 3.6%
We should note that:
Expected return = risk-free rate + Beta × (market rate- risk-free rate)
Therefore,
16.2% = 3.6% + Beta × (11.2% - 3.6%)
16.2% = 3.6% + Beta × 7.6%
16.2% - 3.6% = Beta × 7.6%
12.6% = Beta × 7.6%
Beta = 12.6% / 7.6%
Beta = 1.66
Answer:
Consider the following analysis.
Explanation:
The manager's assumption is that the employee work only for their own benefits and they need immediate punishment for poor work, intermediation, and minute-level supervision. This proves that he uses Theory X.
The upper management, on the other hand, is trying to initiate consultation with the employees before bringing out any improvement plan in the business process. This type of management style implicitly assumes that the employees are motivated and self-directed. This is Theory Y.
So, the first option should be correct.
Equity theory is something not contextual here. Equity theory works on the reduction of perceived inequality in the input and output of the employees as a means of motivation.
