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3 years ago

What does the size of the dividend per share of stock depend on?

Business

2 answers:

podryga [215]3 years ago

8 0

the corporations profit ---- gradpoint

docker41 [41]3 years ago

7 0

The size of the dividend per share of stock depend on : The corporation's profit

Dividend per share is calculated by : Total dividend / Total shares outstanding,

Which mean that dividend per share will increase if the total dividend increases.

Meanwhile total dividend will increased if the company gains more profit

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Farmco just paid its annual dividend of $.32 per share. The dividends are expected to grow at 25 percent annually for the next 4

vitfil [10]

Answer:

$5.73(Approx).

Explanation:

Given:

= 0.32

Growth rate = 25% = 0.25

Number of year = 4

Growth rate after 4 year = 3% = 0.03

Required rate of return = 15% = 0.15

Computation of divined in 4 year:

$Annual\ dividend\ paid(1+growth\ rate)^n\\\\0.32(1+0.25)^4\\\\0.32(1.25)^4\\\\0.32(2.44140625)\\\\0.78125$

Price of stock after year 4 = [Divined in 4 year × (1 + new growth)] /[Required rate of return - Growth rate after 4 year ]

Price of stock after year 4 = [0.78125 × (1+0.03)] / [0.15 - 0.03]

Price of stock after year 4 = [0.8046875] / [0.12]

Price of stock after year 4 = $6.70572917

Present value = Future value / $(1+r)^n$

Present value = $6.70572917 / $(1.15)^4$

Present value = $6.70572917 / $(1.16985856)$

$5.73(Approx).

6 0

3 years ago

giannis corporation purchases debt investments as trading securities at a cost of $150,000 on december 1. this is its first and

trasher [3.6K]

In a condition given above where the Giannis Corporation sells a proportion of its trading securities, costing $9,000, for an amount of $10,000, the journal entry of the transaction would include a gain of $1,000. Therefore, the option C holds true.

<h3>What is the significance of gains?</h3>

The gains of a business organization can be referred to or considered as the surpluses earned by a company from the extraordinary and indirect operations, which are unrelated to its normal business activities. Any such gains are recorded under ''Other Revenues'' Accounts of the firm.

Therefore, the option C holds true and states regarding the significance of gains.

Learn more about gains here:

brainly.com/question/23542346

#SPJ4

The question seems to be incomplete. It has been added below.

Giannis corporation purchases debt investments as trading securities at a cost of $150,000 on December 1. This is its first and only purchase of such securities. On January 5, Giannis corporation decides to sell a portion of its trading securities (costing $9,000) for $10,000 cash. The journal entry to record this sale would include a:

A. Loss of $10,000

B. Gain of $10,000

C. Gain of $1,000

D. Gain of $9,000

3 0

2 years ago

Remodeling is an<br> A. neither. B. Asset. C.expense

nikklg [1K]

Answer:

C expense meaning cost money

5 0

2 years ago

Read 2 more answers

Calculate 2007-03-04-00-00_files/i0080000.jpg% tax on $1,540. a. $11.17 b. $109.34 c. $111.65 d. $113.96

horsena [70]

The answer is C xddddddddddddddd

6 0

3 years ago

Quaker State Wings has 320,000 shares outstanding and net income of $980,000. The company stock is currently selling for $62.97

ELEN [110]

Answer:

The new EPS is $ 3.16

Explanation:

In order to compute the earnings per share after the share repurchase the shares repurchased must deducted from the weighted average number of share of 320,000 before repurchase so as to arrive at the number of shares eligible for the earnings after such repurchase.

The number of shares repurchased=$634,000/$62.97

= 10,068.29

The average weighted number of shares after repurchase is 309,931.71 (320,000-10,068.29)

EPS after repurchase=$980,000/309,931.71

=$3.16 per share

5 0

3 years ago