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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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Dafna1 [17]

Answer:

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A. Minimal

B. Superficial

C. Low-budget

D. Excessive

The correct answer is D. Excessive.

Explanation:

In this case, it is useful to consider that cost control is the procedure that allows companies to carry out the regulatory and protection processes against what the client expects to receive. Toyota is a well-known brand, and poor cost management can have an impact on the inflation of its costs and therefore the price of its cars rises considerably. Excessive costs negatively influence the companies' results, and therefore their correct management influences optimal results for the operation.

8 0
3 years ago
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Andrej [43]

Answer:

The present value of the future earnings is $51,981,214.36

Explanation:

The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.

Taking the value in millions,

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1 * (1+0.3)^3 / (1+0.08)^3  +  1 * (1+0.3)^4 / (1+0.08)^4  +  1 * (1+0.3)^5 / (1+0.08)^5  + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]

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8 0
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Rivalry-related competitive pressures are being intensified by the efforts of rivals to expand their product lines and offer wid
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Answer:

True

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8 0
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Answer:

C

Explanation:

because of the word "environmentalism" which gives meaning and purpose to the term as a group or movement.

8 0
3 years ago
Consider two cars manufactured by Chevrolet in 2014. During 2014, Chevrolet sells one of the two cars to Emily for $20,000. Late
Anna35 [415]

Answer:

The answer is: $39,000

Explanation:

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