Answer:
Dividend growth rate is 4.94%
Explanation:
The share price formula comes handy in this case in determining the dividend growth rate.
Share price=Next year dividend/expected return-dividend growth rate
share price is $83
next year dividend is $5.61
expected return is 11.7%
Dividend growth rate is the unknown which is denoted by g here
$83=$5.61/11.7%-g
by cross multiplication the equation becomes:
$83*(11.7%-g)=$5.61
divide both sides by $83
11.7%-g=$5.61/$83
11.7%-g=0.06759
g=11.7%-0.06759
g=0.117-0.06759
g=0.04941
g=4.94%
Answer: $164,300
Explanation:
Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.
= Beginning dividends payable + Dividends for the year - Ending dividends
= 43,200 + 160,000 - 38,900
= $164,300
Functional-level managers
Hope this helps :)
Answer:
A. rd of 13%, tax rate of 0%
0.13*(1-0)=0.13
B. rd of 13%, tax rate of 20%
0.13 (1-0.2)= 0.104
C. rd of 13%, tax rate of 35%
0.13*(1-0.35)= 0.0845