The process of helping a group to assess its accomplishments and plan alternatives is usually referred to as:

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchang

WINSTONCH [101]

Answer: Option (C) is correct.

Explanation:

Given that,

Old market price of stock = $15

New market price of stock = $18

Here, we assume that EPS be $5.

So,

Price-earning ratio at old price = $\frac{Market\ Price}{EPS}$

= $\frac{15}{5}$

= 3

Price-earning ratio at New price = $\frac{Market\ Price}{EPS}$

= $\frac{18}{5}$

= 3.6

Hence, price-earnings ratio increases.

7 0

3 years ago

Achi Corp. has preferred stock with an annual dividend of $ 3.22. If the required return on Achi's preferred stock is 8.4 %, w

Elza [17]

Answer:

The price of the stock is $38.33

Explanation:

The dividend growth is zero on a preferred stock thus its dividends are just like a perpetuity as the stocks have no defined life. The formula for the price or value of a perpetuity or the zero growth model is,

P0 = D / r

Where,

D is the dividend

r is the required rate of return

Thus, the price of the stock is:

P0 = 3.22 / 0.084 = $38.33

3 0

3 years ago

Read 2 more answers

In a cap-and-trade system, ______ set(s) a regulatory cap (limit) on emissions and issue(s) pollution permits, and ______ can bu

Anna [14]

________________________________

In a cap-and-trade system, the government set(s) a regulatory cap (limit) on emissions and issue(s) pollution permits, and polluters can buy, sell, and trade these permits with others.

________________________________

In a cap and trade system, the government sets an emissions cap and issues a quantity of emission allowances consistent with that cap. Emitters must hold allowances for every ton of greenhouse gas they emit. Companies may buy and sell allowances, and this market established an emissions price.

________________________________

4 0

2 years ago

Judy's Boutique just paid an annual dividend of $3.73 on its common stock. The firm increases its dividend by 3.40 percent annua

Talja [164]

Answer:

cost of equity = 12.16 %

Explanation:

given data

annual dividend of $3.73

increases dividend = 3.40 percent annually

stock price = $43.96 per share

to find out

What is the company's cost of equity

solution

we will use here Gordon model for compute company's cost of equity that is

market value = $\frac{dividend* ( 1+growth\ rate)}{cost\ of\ equity - Growth\ rate}$ ........................1

put here value we get

43.96 = $\frac{3.73* ( 1+0.034)}{cost\ of\ equity - 0.034}$

solve it we get

cost of equity = 0.121735

cost of equity = 12.16 %

8 0

3 years ago

Partial adjusted trial balance for Sheffield Corp. at December 31, 2017, includes the following accounts: Retained Earnings $17,

Roman55 [17]

Answer:

Sheffield Corp

Retained Earnings Statement for the year ended December 31, 2017:

Net Income $10,400

Retained Earnings, January 1 17,000

Dividends (6,700)

Retained Earnings, December 31 $20,700

Explanation:

Sheffield's statement of retained earnings shows the net income after tax, which is added to the Retained Earnings at the beginning of the period. Then the dividends paid are deducted to arrive at the Retained Earnings at the end of the period. The statement shows the distribution of net income to stockholders.

5 0

3 years ago