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NARA [144]
3 years ago
8

The following financial information is available for Monty Corporation. (in millions) 2022 2021 Average common stockholders’ equ

ity $2,500 $2,600 Dividends declared for common stockholders 300 638 Dividends declared for preferred stockholders 30 30 Net income 500 550Calculate the payout ratio and return on common stockholders’ equity for 2022 and 2021.
Business
1 answer:
WARRIOR [948]3 years ago
8 0

Answer:

2022

Pref share pay out ratio = 0.06

Common Stock = 0.2

2021

Pref share pay out ratio = 0.055

Common Stock = 0.21

Explanation:

Pay out ratio = Dividend Paid or Declared/Net Income

Return on Common stock equity = Net Income/Average common stock

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3 years ago
Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inf
miss Akunina [59]

Answer:

Proposal A

3.75 years

Proposal B

3.375 years

Explanation:

<u>Proposal A</u>

Payback = 3.75 years

Year     Cash Inflow      Initial Investment Balance   Year Count

0                   0                         1,050,000                        

1                   $280,000           770,000                            1

2                  $280,000           490,000                           2

3                  $280,000           210,000                            3

4                  $280,000           0                                    *3.75

* 1050,0000 / 280,000 = 3.75 years

<u>Proposal B</u>

Payback = 3.375 years

Year     Cash Inflow      Initial Investment Balance   Year Count

0                   0                         1,050,000                        

1                   $350,000           700,000                            1

2                  $3150,000          385,000                           2

3                  $280,000           105,000                            3

4                  $280,000           0                                    *3.375

* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years

5 0
3 years ago
An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The
valentina_108 [34]

Answer:

The answer is: the real gain in real GDP between 2010 and 2000 is 18.34%

Explanation:

First we have to determine the real GDP using the GDP deflator.

GDP deflator = (nominal GDP / real GDP) x 100

For year 2000:

24 = ($672 billion / real GDP ) x 100

2,400 = $672 billion / real GDP

real GDP = $0.28 billion

For year 2010:

51 = ($1,690 billion / real GDP ) x 100

5,100 = $1,690 billion / real GDP

real GDP = $0.331 billion

To calculate the real gain between real GDP from year 2000 to year 2010, we divide real GDP 2010 over real GDP 2000 and subtract 1:

($0.331 billion / $0.28 billion) -1 = 0.1834 x 100% = 18.34%

5 0
3 years ago
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