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2 years ago

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]2 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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Which of these statements is true?

olasank [31]

Answer:

Compound interest will lead to a larger sum of money than a comparable simple interest payment.

Explanation:

The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.

To find the future value, we use the compound interest formula;

$A = P(1 + \frac{r}{n})^{nt}$

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Mathematically, simple interest is calculated using this formula;

$S.I = \frac {PRT}{100}$

Where;

S.I is simple interest.

P is the principal.

R is the interest rate.

T is the time.

6 0

2 years ago

A bond that pays interest semiannually has a coupon rate of 5.44 percent and a current yield of 4.91 percent. The par value is $

Aleksandr [31]

Answer:

Results are below.

Explanation:

Giving the following information:

Cupon rate= 0.0544/2= 0.0272

YTM= 0.0491/2= 0.02455

The par value is $1,000

We weren't provided with the number of years of the bond. I imagine for 9 years.

To calculate the bond price, we need to use the following formula:

Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price= 27.2*{[1 - (1.02455^-18)] /0.02455} + [1,000*(1.02455^18)]

Bond Price= 391.93 + 646.25

Bond Price= $1,038.18

4 0

2 years ago

Which statement is true about an original fashion and its knockoff? A. The knockoff will be more expensive than the original. B.

qaws [65]

Answer:

D. The knockoff may miss the finer fit and design details of the original.

Explanation:

Knockoffs are popular in the fashion industry of today. Why? Since most designer items are highly wanted, but unreachable and too expensive for the masses, some manufacturers opted to create replicas of those items.

These items are often made in mass production factories. This is why they often miss the artisan and fine touch of the original designer item.

6 0

2 years ago

Engineworks Co. provides the following fixed budget data for the year: Sales (20,000 units) ……………………………. $600,000 Cost of sale

marysya [2.9K]

Answer:

Flexible Contribution Margin 147,000

Actual Contribution Margin 139,000

Variance 8000 unfavorable

Explanation:

Engine Works Company

Flexible Budget Performance Report

For the year using the Contribution Margin Format

Actual Static Flexible

(21,000 units) (20,000 units) (21,000 units)

Sales …$651,000 $600,00 630,000 Fav

V. Cost of goods sold: 512,000 $ 460,000 483,000 Unfav

Direct materials .$231,000 $200,000 210,000

Direct labor 168,000 160,000 168,000

Variable overhead 73,500 60,000 63,000

Variable Operating Expenses 39,500 40,000 42,000

Contribution Margin $139,000 140,000 147,000 Unfav

Fixed Expenses

Fixed Operating Expenses 12,000 12000 12000

Fixed overhead 77,500 80,000 84,000

Income from operations $ 49,500 $ 48,000 $51,000 Fav

Working

Flexible Calculations = (600,000/20,000)*21,000= $ 630,000

V. Cost of goods sold= ($ 460,000 /20,000)*21,000= 483,000

Direct materials . = $200,000 /20,000)*21,000= 210,000

Direct labor = 160,000/20,000)*21,000= 168,000

Variable overhead = 60,000 /20,000)*21,000= 63,000

Variable Operating Expenses = 40,000 /20,000)*21,000= 42,000

All calculations are carried out in the same way. Dividing the amount in the given budget with the number of units and multiplying it with actual number of units.

Flexible Contribution Margin 147,000 and Actual Contribution Margin 139,000 which shows a Variance of 8000 which is unfavorable.

4 0

2 years ago

Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 6.2%. Now, with 6 yea

lyudmila [28]

Answer:

The price of the bond is $659.64.

Explanation:

C = coupon payment = $62.00 (Par Value * Coupon Rate)

n = number of years = 6

i = market rate, or required yield = 15 = 0.15 = 0.15 /2 = 0.075

k = number of coupon payments in 1 year = 2

P = value at maturity, or par value = $1000

BOND PRICE= C/k [ 1 - ( 1 / ( 1 + i )^nk ) / i ] + [ P / ( 1 + i )^nk )]

BOND PRICE= 62/2 [ 1 - ( 1 / ( 1 + 0.075 )^6x2 ) / 0.075 ] + [ $1,000 / ( 1 + 0.075 )^6x2 )]

BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]

BOND PRICE= $239.79 + $419.85 = $659.64

8 0

2 years ago