How large the dividend per share will each shareholder

Assignment Help Accounting Basics
Reference no: EM133163735

Question - Turquoise Berhad has total earnings last year of RM5,000,000 but expect total earnings to drop to RM4,750,000 this year because of a slump in the housing industry. There are currently 1,000,000 shares of common stock outstanding. The company has RM4,000,000 worth of investments to undertake this year. The company finances 40 %% of its investments with debt and 60 %% with equity capital. The company paid RM3.00 per share dividend last year.

Required -

a) If the company follows a pure residual dividend policy, how large the dividend per share will each shareholder receive this year?

b) If the company maintains a constant dividend payout ratio each year, how large the dividend per share will each shareholder receive this year?

c) If the company follows a constant dollar dividend policy, how large the dividend per share will each shareholder receive this year?

Reference no: EM133163735

Questions Cloud

What is the break-even in sales dollars for this april sales : A business produces and sells two models of its product, Small and Large. What is the break-even in sales dollars for this April sales
Assignment on corporate strategies : What is a growth strategy? Why does a business determine to use a growth strategy? Explain.
Make conflict management easier : Do community level conflicts inevitably include some measure of haves v have-nots as part of the underlying issues in the conflict?
Focus on introducing organizational change : Kotter's 8 steps of change focus on introducing organizational change and on managing resistance to change while encouraging buy-in by the applicable
How large the dividend per share will each shareholder : If the company maintains a constant dividend payout ratio each year, how large the dividend per share will each shareholder receive this year
Mediation violates disputants fourteenth amendment rights : Would you argue, as some scholars would, that mandatory mediation violates disputants' fourteenth amendment rights? Why or why not?
Effects on staff for return on investment : The influence of ''culture shock'' in international human resource management and its impacts on expatriate workers are well-known.
How much will the sale of one additional unit : Variable manufacturing expense $297,000. How much will the sale of one additional unit add to the company's net operating income
BUS8590 The Business of Social Media Assignment : BUS8590 The Business of Social Media Assignment Help and Solution, Conestoga College - Assessment Writing Service

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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