Reference no: EM131050219
Schwartz Company represent a summary of your first-iteration forecast amounts for Year +1. Schwartz uses dividends as a flexible financial account. Compute the amount of dividends you can assume that Schwartz will pay in order to balance you projected balance sheet. Present the projected balance sheet.
Year +1
Operating income-----------------------------------------$58
Interest expense ---------------------------------------------(8)
Income before tax ------------------------------------------$50
Tax provision (20.0% effective tax rate)--------------(10)
Net income------------------------------------------------------$40
===========
Total assets ------------------------------------------------------$200
Accrued liabilities---------------------------------------------------43
Long-term debt------------------------------------------------------80
Common stock, at par---------------------------------------------20
Retained earnings (at the beginning of Year +1)----------34
Can you please help me understand how to calculate for the dividends for the question above.
|
What is the value of this option to abc
: ABC, Inc. has a potential capital budgeting project with a growth option. The NPV of the project with the growth option is $1,631 and without the growth option is $472. What is the value of this option to ABC?
|
|
Evaluating two different irrigation system options
: A company is evaluating two different irrigation system options. An underground automatic irrigation system will cost $9.2 million to install and $80,000 pre-tax annually to operate. It will not have to be replaced for 20 years. The firm leases its l..
|
|
Gather a systematic sample from a local phone
: You are to gather a systematic sample from a local phone book with 75,000 names. If every kth name in the phone book is to be selected, what value of k would you choose to gather a sample size of 500?
|
|
Balance in the retained earnings account after dividend
: Pluto's has 14,000 shares of stock outstanding with a par value of $1 per share. The market value is $39.60 per share. The balance sheet shows $522,500 in the capital in excess of par account, $14,000 in the common stock account, and $429,700 in the ..
|
|
Calculate for the dividends for the question above
: Can you please help me understand how to calculate for the dividends for the question above.
|
|
Bonds coupon rate is identical to the discount rate
: A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? A The bond’s coupon rate exceeds the discount rate. B The bond’s coupon rate is identical to the discount rate. C The bond’s price is a..
|
|
A hypothetical statistics author
: A hypothetical statistics author is obsessed with making 10-foot putts. Each day that he practices, he putts 60 times and counts the number he makes.
|
|
Uses its excess cash to complete stock repurchase
: A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6,200. Equity is worth $5,000. The firm has 500 shares of stock outstanding and net income of $720. What will the new earnings per sha..
|
|
Suppose firm has preferred stock
: Suppose a firm has a preferred stock that pays a $10 annual dividend (no growth expected in this payment) and currently sells for $90.00 per share. If it plans to issue more preferred shares paying the same dividend but also needs to incur a floatati..
|