36 If the firm's dividend policy was to pay PO.25 per share each period except when earningsexceed P1.50, when an extra dividend equal to 50 percent of the earnings above P1.50 wouldbe paid, the annual dividend for 2020 were *Format: 1.11A firm has had the following earnings history over the last five years:Year2020201920182017Earnings per shareP 3.50P2.00P1.75P1.25-P1.002016

In the given question, the earnings of the company for 2020 are P 3.50 per share. As per company’s…

Answered: If the firm's dividend policy was to…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
A firm has had the indicated earnings per share over the last three years. YEAR EPS 2019 3.00 2018 2.00 2017 1.00 If the firm's dividend policy was based on a constant payout ratio of 50%, determine the annual dividend for each year. If the firm's dividend policy was based on a fixed dollar payout policy of 50 cents per share plus an extra dividend equal to 75% of earnings per share above $1.00, determine the annual dividend for each year. B)Compare stock dividends and stock splits.
If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share? a. $7.00 b. $2.27 c. $3.08 d. $1.12
The following information was available for the year ended December 31, 2022: Dividends per share Earnings per share 1.35 3.00 28.20 Market price per share at year-end Required: a. Calculate the price/earnings ratio for 2022. Note: Round your answer to 2 decimal places. b. Calculate the dividend payout ratio for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). c. Calculate the dividend yield for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). a. Price/Earning ratio b. Dividend payout ratio c. Dividend yield % Ji di %
The firm’s earnings per share, rounded to the nearest centavos, for 202X was P0.53 P0.51 P0.30 P0.32
Based on the attached table, which company has the highes annual dividend yield? Company C Company B Company A Stock A B C D Share Price $20 $30 $40 $50 Quarterly Dividend Amount 0.10 0.15 0.50 0.25 Annual EPS $0.50 $3.00 $2.00 $2.50
Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $61 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year? .... O A. $57.34 O B. $5.04 OC. $55.96 O D. $3.66 ..
eta Company has paid the following dividends during the past four years of:Year DPS2000 $2.32001 $2.6452002 $3.042003 $3.50If dividends are expected to grow at the same rate as the past four years and the required rate of return on Zeta Company is 11%, what is the expected price of a share of Common common at he end of 2003?
If a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the investors rate of return is 15%, calculate the cash cow price.0 a. $180 b. $190 c. $22 Od. $210 e. $20IGENEXT
CHOOSE THE LETTER If a firm’s earnings and dividends grow from P3.15 per share to P4 per share over an 8-year period, what is the rate of growth? A. 8%B. 3%C. 5%D. 6%E. None of the above
A company currently reported dividend of $12. It is expected that will reinvest 50% of its earnings perpetually. The return on equity of the company is 20% and remains unchanged in the future. Suppose the cost of equity of the company is 13%, what is the fair price of the stock based on the dividend discount model? A. $200 В. S220 C. $400 D. $440

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