Answer:
66.67%
Explanation:
A firm has an EPS of $12
The dividend paid is $4
The first step is to calculate the payout
= 4/12
= 0.3333×100
= 33.33
Therefore the Plowback ratio can be calculated as follows
= 1-33.33%
= 0.667×100
= 66.67%
Hence the Plowback ratio is 66.67%
I think now I’m present day that money is now being transferred online and email services I think cash for no longer be used in the future because the rise of technology and how everyone is now getting so used to it and depending on tech
It would be positive it would be more clear to people and for the younger generation to learn about but for the older generation it would be much harder and would be a negative affect on them since they didn’t use technology in their days and a lot of people are still used to cash
Answer: Po = D1/Ke + g
$34.75 = D1/0.104 + 0.039
$34.75 -0.039 = D1/0.104
$34.711 = D1/0.104
D1 = 34.711 x 0.104
D1 = $3.61
Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.
