I’m sorry but like what is that supposed to be?
I took the business class last year but if I remember correctly Net profit is more important to consider because even if your net profit is 0, your company is still a success.
Answer:
$628.49
Explanation:
Cash flows Discount factor Future value
$100 1.1449 $114.49
$200 1.07 $214
$300 1 $300
Future value $628.49
The discount factor is as follows
= (1 + interest rate)^number of years
For $100 the year is 2
For $200 the year is 1
For $300 the year is 0
The dividend growth is 10.5%.
Given ROE of 15% and dividend of 30%.
Dividend growth rate is to be computed.
The dividend growth rate is the annualized percentage rate of growth of a specific stock's dividend over time. Many established organizations strive to raise dividends given to shareholders on a regular basis. When utilizing a dividend discount model to value equities, the dividend growth rate must be calculated.
A track record of substantial dividend growth may indicate that future dividend increase is expected, which can indicate long-term profitability.
The formula to compute the dividend growth rate (DGR) is given below:
DGR = ROE×(1-payout ratio)
Substitute values in the formula given above to find the DGR.
DGR = 15%×(1-30%)
=15% × 0.70
=0.105 or 10.5%
Dividend payout ratio "DGR" = 10.50%
Therefore, the dividend payout ratio is c. 10.50%
To know more about dividend payout ratio click here:
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Answer:
Year 1= $5,480
Year 2= $5,480
Explanation:
Giving the following information:
Sheridan Chemicals Company acquires a delivery truck for $30,200 on January 1, 2022. The truck is expected to have a salvage value of $2,800 at the end of its 5-year useful life.
Under the straight-line method, the depreciation expense is the same in all of the useful life of the truck.
We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (30,200 - 2,800)/5= $5,480
Year 1= $5,480
Year 2= $5,480
