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Reika [66]
3 years ago
15

What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 6%

Business
1 answer:
Varvara68 [4.7K]3 years ago
6 0

Answer:

21%

Explanation:

We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data

DATA

Payout ratio = 0.4

Return on equity = 25%

Dividend yield = 6%

Solution

Growth rate = Return on equity x retention ratio

Growth rate = Return on equity x (1 - payout ratio)

Growth rate = 25% x (1-0.4)

Growth rate = 25% x 0.6

Growth rate = 15%

Expected return = Dividend yield + growth rate

Expected return = 6% + 15%

Expected return = 21%

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kotegsom [21]

Answer:

The correct answer is E) Sebastian checks if the job flow and procedures are logical.

Explanation:

The entry process means the beginning of the functions exercised by managers to determine if they are indeed making good use of tools for the understanding of their subordinates. If there is a logical order between the workflow and the procedures, it is said that the evaluation is executed in the best way, since in order to execute the work it is necessary to adhere to a series of guidelines that guarantee excellent and quality work.

8 0
3 years ago
On January 1, 2004, Kay Inc. issued its 10% bonds in the face amount of $400,000, which mature on January 1, 2014. The bonds wer
DaniilM [7]

Answer:

Unamortized discount is $43,700

Explanation:

Unamortized bond discount=original bond discount-amortization to date

original bond discount is $46,000

Amortization =interest  payable-interest expense

interest payable=$400,000*10%*6/12

                            =$20,000

Interest expense=$354,000*10%*6/12

                             =$17,700

amortization of discount=$20,000-$17,700

                                        =$2300

unamorized bond discount=$46000-$2300

                                            =$43,700

The unamorized bond discount at the end of the first six months is $43,700

                     

3 0
3 years ago
A firm’s management analyzes financial statement’s so that: a. they can get feedback on their investing, financing, and working
Zepler [3.9K]

Answer:

d. a and b

Explanation:

A firm’s management analyzes financial statement’s so that:

Evaluating company's performance, by analyzing the financial statements in respect of various areas of financing, investing and operating activities, and then comparing the performance with past records and industries of same category.

Further the firm's management is responsible to take decision of dividend, and return to be paid to equity and various other stakeholders, thus both options a and b are correct.

Correct answer

d. a and b

7 0
3 years ago
Conduct online research to discover how to start and maintain a good credit rating throughout your life. Write a 500-word report
fiasKO [112]
They would need way more credit and more money to pay for it
4 0
3 years ago
Read 2 more answers
The first budget customarily prepared as part of an entity’s master budget is the blank____________ .
Andreyy89

Answer: sales budget

Explanation:

The first budget customarily prepared as part of an entity’s master budget is the sales budget.

Sales budget is simply financial plan, that shows how resources will have to be distributed in order for the predicted sales to be achievable.

4 0
3 years ago
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