User Account

All Pages

Compute market value of company share of productivity

Assignment Help Financial Accounting
Reference no: EM132778576

Problem 1: The earnings per share of a company are Rs. 80 and the rate of capitalization applicable to the company is 12%. The company has before it an option of adopting a payment ratio of 25% (or) 50%(or) 75%. Using Walter's formula of dividend payout, compute the market value of the company's share of the productivity of retained earnings (i) 12% (ii) 8% (iii) 5%

Reference no: EM132778576

Questions Cloud

Calculate earnings on equity shares for modi vanaspathi ltd : Calculate earnings on equity shares for Modi vanaspathi Ltd. Modi vanaspathi Ltd. Is capitalised with Rs.10,00,000 divided into 1,00,000 equity shares of Rs.10
What the amount charged to cost of goods on august was : Jeter Company uses the perpetual inventory, On August 15, 8,000 units were sold for $12 per unit. The amount charged to cost of goods on August 15 was
Analyze basic components of effective performance appraisal : A performance appraisal is a regular review of employee job performance and contribution to organizational objectives. In many cases, performance appraisals.
What shall happen to the price of the share : Determine the price of its share using Gordon's Model. What shall happen to the price of the share if the company has payout of 60% (or) 20%?
Compute market value of company share of productivity : Using Walter's formula of dividend payout, compute the market value of the company's share of the productivity of retained earnings 12%, 8%
Discuss what you have learned or what your thoughts : Any short article related to our topics this week of time value of money. For the purpose of the discussion, avoid sites such as Wikipedia or Investopedia.
How should hong document the staff member complaint : How should Hong document the staff member's complaint? Should Hong speak to the team members individually or collectively when gathering information.
Under which conditions will investor demand a larger return : Under which conditions will an investor demand a larger return (yield) on a bond? Interest rates decrease due to decline in inflation.
Why would lump-sum amount be less than the original award : How much money would you earn if you accept the annual payments? How can you end up with more money than the original $50MM award?

Reviews

Write a Review

Financial Accounting Questions & Answers

  When an employees relative has passed on

According to IFRS or ISA, how do the company treat fees paid to employees for condolences. When an employees relative has passed on?

  The bank gets its full future value

Suppose you borrow buy a $200000 hours, and put $50,000 down toward the purchase price. You borrow the rest from a bank at 6% annual interest, compounded monthly, on 1.1.16,for a 30-years period. The plan is that you pay on the last day of each month..

  Why is it important to calculate and understand the rate

What is sustainable growth, and why is it important to calculate and understand this rate? What is the sustainable growth equation, what are its components, and how is it calculated?

  Prepare the journal entry for the stock issuance

To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. 1-a. Complete the table below, indicating the account, amount, and direction of the eff..

  Describe how the accounting equation is impacted

Describe how the Accounting Equation is impacted

  How much more sales can SynoCorp generate

$810,000 in sales. The firm was operating at 90 percent capacity. How much more sales can SynoCorp generate before it is at full capacity?

  What did jonathan mean by saying club had made an investment

What did Jonathan mean by saying the club had made an investment in the rodeo? Is his comment consistent with Shelly's goals for the rodeo?

  Prepare entry that the parent makes to record the investment

A parent company acquires all of the outstanding common stock of its subsidiary for a cash purchase price of $265,000. On the acquisition date, the subsidiary reported $60,000 for Common Stock and $45,000 for Retained Earnings. Prepare the entry that..

  Most correct regarding cause of sampling? risk

Which one of the choices below is most correct regarding a cause of sampling? risk?

  What about the partnership characteristics of mutual agency

Jerry is confused about the partnership characteristics of mutual agency and unlimited liability. Briefly explain these two characteristics for Jerry.

  Find what is the market risk premium

Alpha stock has an expected return of 12.25 percent. The beta of the stock is 1.15 and the risk-free rate is 5 percent. What is the market risk premium?

  Determine a plant assets cost if it is acquired in exchange

Explain how to determine a plant asset's cost if it is acquired in exchange for a nonmonetary asset when the transaction has commercial substance.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd