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BaLLatris [955]
3 years ago
9

Patrick is the CFO of Reed Inc. Patrick says that RI earned $13 million last year and maintains a 30% dividend payout ratio. The

company has 2 million shares of common stock outstanding and a P/E ratio of 10. What is the dividend yield for RI?
a. 1.50%
b. 2.50%
c. 3.00%
d. 4.50%
Business
1 answer:
Scilla [17]3 years ago
3 0

Answer:

     = 3%

Explanation:

<em>Dividend yield is the proportion of a share a price that is earned as dividend. In other words, it is the dividend paid as a percentage of the share price.</em>

Dividend yield = DPS/Share price  ×  100

The share price can be determined using the P/E ratio as follows:

<em>Share price = P/E ×  EPS</em>

<em>Earnings per share (EPS</em>) = $13 million/ 2 million

                                        = $6.5 per share

<em>Share price</em> = 10 × $6.5 = $65

<em>Dividend paid (Dividend per share) = Payout ratio × EPS</em>

                          = 30% × $6.5

                         = $1.95 per share

Dividend yield = DPS/Share price  ×  100

                        = 1.95/65  ×  100

                       = 3%

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Answer:

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Explanation:

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Since in the question, it is given that the seller has shipped the goods that are worthless i.e of no use for the buyer so in this case,  the bank would not reimburse the buyer.

Therefore the correct option is A.

6 0
3 years ago
Example 1: Alex began putting money in his 401(k) in his early 20s; consequently, he will have financial security when he retire
11111nata11111 [884]

Answer:

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Explanation

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8 0
3 years ago
Valerie has a summer job hand-dying shirts that will be sold on the boardwalk. she is paid $3.50 per shirt. this is an example o
lyudmila [28]

Answer: pay for performance

                                                                 

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In the given case, Valerie  is earning from the summer job on the basis of production she do while on the job.

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yuradex [85]

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3 0
2 years ago
A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company
Vladimir [108]

Answer:$12.63

Explanation:

The preferred stock is a fund raising mechanism used by a firm to raise fund from the public. A preferred stock can have a fixed rate of dividend and can be cummulative. A preferred stock of such means the firm is oblige to pay the dividend and if it's unable to pay in a particular year then it will added to future years.

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(5% of $92.50)+ $8

= $12.63

5 0
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