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Stolb23 [73]
3 years ago
13

Whitewall Tire Co. just paid an annual dividend of $1.70 on its common shares.

Business
1 answer:
r-ruslan [8.4K]3 years ago
6 0

Answer:

10.59%

Explanation:

First, find next year's dividend using dividend discount model formula;

D1 = D0 (1+g)

D0 = current dividend paid = 1.70

D1 = expected next year's dividend

g = growth rate = 2.10% or 0.0210 as a decimal

therefore. D1 = 1.70 (1+0.0210)

D1 = 1.70 *1.0210

D1 = 1.7357

With the current price of $20.44,  find the cost of stock (r) ;

r = \frac{D1}{P0} + g

P0 = Current price

r = \frac{1.7357}{20.44} + 0.0210\\ \\ =0.0849 +0.0210\\ \\ =0.1059

As a percentage, the cost of stock is 10.59%

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Intel Corporation
statuscvo [17]

Answer:

a. Gross income = sales - COGS

Pretax = gross income - SG$A expense +operating income + non operating income- interest expense - unusual expense

income taxes = Pretax - net income

income statement    2016 2015 2014 2013 2012

sale                        59387 55355 55870 52708 53341

COGS                23425 20651 20522 21418 20507

gross earnings   35962 34704 35348 31290 32834

SG&A EXPENSE   21149 19835 19693 18729 18117

operating income   14813 14869 15655 12561 14717

non operating income  533   -51          224   595 463

interest expense   733    337     192          244 90

unusual expense   1677 269        -114     301          217

pretax                27749 29081 31456 25172 29590

income taxes         17433 17661 19752 15552 18585

Net income          10316 11420 11704 9620 11005

b. Average tax rate = total taxes / total taxable income ( for this calculation we need the tax table for identifying the correct tax brackets for each taxable income falling on it.

                                             2016            2015        2014       2013          2012

gross profit margin       0.61%          0.63%   0.63%   0.59%     0.62%

net profit margin        0.17 %         0.21%        0.21%    0.18%      0.21 %

c. is attached

d.income statement   2016 2015 2014 2013 2012

sale                             100   100   100  100           100

COGS                   39.44% 37.31% 36.73% 40.64% 38.45%

gross earnings   60.56% 62.69% 63.27% 59.36% 61.55%

SG&A EXPENSE   35.61% 35.83% 35.25% 35.53% 33.96%

operating income   24.94% 26.86% 28.02% 23.83% 27.59%

non operating expense  0.90% -0.09% 0.40% 1.13% 0.87%

interest expense   1.23% 0.61% 0.34% 0.46% 0.17%

unusual expense   2.82% 0.49% -0.20% 0.57% 0.41%

pretax                   46.73% 52.54% 56.30% 47.76% 55.47%

income taxes          29.35% 31.90% 35.35% 29.51% 34.84%

Net income        17.37% 20.63% 20.95% 18.25% 20.63%

Explanation:

gross profit margin = gross profit/ sales

net profit margin = net profit / sales

no c is an attachment

5 0
3 years ago
Johnson Battery Systems recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depr
muminat

Answer:

$1,100

Explanation:

EBIT = Sales - Costs - Depreciation

       = $9,000 - $6,000 - $1,500

       = $1,500

Net income = EBIT - Tax @ 40%

                    = $1,500 - $600

                    = $900

Operating cash flow = Net income + Depreciation

                                  = $900 + $1,500

                                  = $2,400

Free cash flows:

= Operating cash flow - Increase in working capital - Capital expenditure

= $2,400 - $500 - $800

= $1,100

8 0
3 years ago
So, I’ve decided to leave Brainly. I had a great time helping people, so I hope you have a great day. :) use this time to miss m
liberstina [14]

Answer:

why now when people still need help alot of help

Explanation:

6 0
3 years ago
Read 2 more answers
To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an obj
madam [21]

Answer: a.)maximizes the minimum return.

Explanation:

5 0
3 years ago
hich of the following statement is CORRECT? A. A sunk cost is any cost that must be expended to complete a project and bring it
lbvjy [14]

Answer

D. A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.

Explanation:

As per the data given in the question,

Option (D) is correct among the given statements. A sunk cost is that cost which was occurred and expended in the past and if firm decides to do not go ahead, it can not be recovered.

For illustration - Think about the cost incurred to find out the feasibility of the project. Though in past firm was agree with the project but now even if the firm decides not to the project, this cost can not be recovered.

8 0
3 years ago
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