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trapecia [35]
3 years ago
10

What is the plowback ratio for a firm that has earnings per share of $12.00 and pays out $4.00 per share as dividends?

Business
1 answer:
liubo4ka [24]3 years ago
8 0

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%

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Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000
Alisiya [41]

Answer:

$3,500 preferred; $2,500 common.

$3,000 preferred; $3,000 common.

$0 preferred; $6,000 common.

$4,200 preferred; $1,800 common.

$6,000 preferred; $0 common.

4 0
3 years ago
U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic produ
docker41 [41]

Answer:

United States continue to have quotas because it increases the price of imported Sugar and thereby reducing the quantity demanded.

Explanation:

To start with, quotas is a restriction imposed by a government. Quotas limits the quantity of a good that can be imported into a country during a specific period of time. In this question, an import license specifies the quantity of Sugar that be brought into (imported) the USA.

United States continue to have these quotas because import quotas reduces the supply of imported goods (Sugar), thereby, preventing an uncontrolled importation of Sugar. This raises the price of imported Sugar against the price of locally produced Sugar which is lower in price. Intuitively, consumers will go for lower price (locally produced Sugar) which satisfies the law of demand for normal goods.

Therefore, it helps the domestic producers to stay in the competition.

3 0
3 years ago
How is having a security system for your home a risk
Iteru [2.4K]
<h2>The security system will alert authorities and deter  criminals, protecting your valuables and property. </h2><h2>The security system will give you peace of mind</h2>

Explanation:

Option 1: We cannot say that every visitor will be a thief or criminal. So a "home security system" is to stay alert from danger

Option 2: Burglars and home security system is to alert authorities and to protect our valuables. But home security system in addition can detect flood, fire, etc.

Option 3: Yes that's true. We feel like there is someone to protect us and our valuables. So it provides peace of mind.

Option 4: Why should we keep the doors unlocked? It will tempt for crime to happen. So this choice is invalid.

5 0
3 years ago
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
nevsk [136]

Answer:

8%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

Cash flow in year zero = $-165,000

Cash flow each year from year one to seven = $31,692

IRR = 8%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
3 years ago
If the sides market (betting on a team against the point spread) for NFL football betting is semi-strong form efficient, what do
Black_prince [1.1K]

Answer:

It means that sides market for NFL football betting which is semi strong form of efficient market hypothesis cannot utilize technical or fundamental analysis to earn higher gains since stocks have already adjusted with latest football information release.

Explanation:

Semi strong form of market is an aspect of Efficient Market Hypothesis which provides that security prices adjust rapidly to available public information.

It states that changes in stock prices is an outcome of release of new public information. Based on the information that is made available, investors actions are based, which ultimately leads to changes in prices.

Semi strong form follows the belief that since all public information is used while arriving at a stock's current price, investors cannot utilize technical or fundamental analysis to earn higher returns.

4 0
3 years ago
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