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3 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]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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Answer: E

Dividend yield

Explanation:

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3 years ago

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3 years ago

If an economy experiences increasing opportunity costs with respect to two goods, then the production possibilities curve betwee

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Production possibilities curve between the two goods will be a straight, downward-sloping line if the opportunity cost rise.

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2 years ago

The first step in creating a budget is to identify your expenses. true or false.

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3 years ago

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Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

OLEGan [10]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

Less: Cost of merchandise sold (330,000)

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

Total operating expenses $85,000

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

Total other revenues (expenses) $(5,000)

Income before taxes $335,000

Less: Income Tax 0

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

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3 years ago