What are the annual dividends per share

Assignment Help Finance Basics
Reference no: EM132538925

a. Sunnyside Tavern earns $6.89 per share and has a stable dividend payout ratio of 40%. If Sunnyside Tavern has a capital budget of $300,000 and 75,000 shares outstanding, what are the annual dividends per share?

Round to the second decimal place.

b. Igloo Ice Cream earns $5.89 per share, has 61,629 shares outstanding, and a capital budget of $137,302. If Igloo Ice Cream raises all its funds internally and follows the passive residual policy, what are the annual dividends per share?
Round to the second decimal place.

c. Solo Ships has 101,165 shares outstanding and plans to pay $4.03 per share in dividends next year. Solo has a capital budget of $529,871 for next year and plans to maintain its present debt ratio of 0.30. If earnings are expected to be $6.35 per share, how much external equity must Solo raise?

Reference no: EM132538925

Questions Cloud

Issuance government decreased the yield : United Bank issued a 3 years 7% fixed rate loan to a borrower. After 1 year of the issuance government decreased the yield on T-bond by 50 basis point
Which characteristic not for stock split nor stock dividend : Which is a characteristic of neither a stock split nor a stock dividend?There is no change in the authorized share capital of the company
Determining the maximum profit : The put strike price is $60. The maximum profit (including the premium as the cost) is $55. Is the above statement true or false? Give explanations.
How does the item impacted net income : How does that item impacted net income (or net loss) and why there is an adjustment necessary to determine cash from operations.
What are the annual dividends per share : Sunnyside Tavern earns $6.89 per share and has a stable dividend payout ratio of 40%. If Sunnyside Tavern has a capital budget of $300,000
Dollar gross and net gain or loss : Calculate your dollar gross and net gain or loss on this position, taking into account both the margin interest and the transaction cost to sell.
Identify the effect the declaration of a stock dividend : Identify the effect the declaration of a stock dividend has on total share capital, retained earnings, and shareholders' equity. Total Share Capital
Why are adjustments needed to the accounting records : Why are adjustments needed to the accounting records? To control for an inflow of revenues at the end of an accounting period
Discuss temperance as one of the cardinal christian virtues : Discuss temperance as one of the cardinal christian virtues and how temperance reflects the main principles of christian ethics

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cost of equity-sunrise auto

Sunrise Auto has an unlevered cost of capital of 11.9 percent, a total tax rate of 27 percent , and expected earnings before interest and taxes of $ 31,730.

  What is morgan agi after considering rental loss

During the year, Morgan had a rental loss of $13,000. What is Morgan's AGI after considering the rental loss.

  What is the company current stock price

The stock's beta is 1.2, the risk-free rate of interest is 6%, and the rate of return on the market portfolio is 11%. What is the company's current stock price?

  How much money is in paul roth ira when he retires

With no additional deposits after age 60, the money in Paul's Roth IRA continues to earn 5.5 % interest compounded annually until he retires at age 66.

  How does controlling inventory impact a firm''s profitability

What role does the ABC system play in inventory control? What group of inventory items does the EOQ model focus on controlling? Describe the objective and cost trade-off addressed by the EOQ model.

  A bond promises to pay 150 in 12 months the annual

a bond promises to pay 150 in 12 months. the annual applicable interest rate is 5. what is the bonds price

  Lang industrial systems company lisc is trying to decide

lang industrial systems company lisc is trying to decide between two different conveyor belt systems. system a costs

  What is the purpose of the statement of stockholders equity

What is the purpose of the statement of stockholders' equity? What is other comprehensive income, and how is it disclosed?

  Risk measurement terms

Distinguish among the following risk measurement terms: beta, r-squared, covariance, and correlation coefficient.

  Determining the intrinsic value for mcc stock

Mature Conglomerate Corporation (MCC) just paid a dividend of $1.49 per share, and that dividend is expected to grow at a constant rate

  Compute the flotation costs

Based on the information , compute the flotation costs that Sprite would incur it is raises the needed funds by issuing equity only.

  International transactions are denominated in us dollars

On an export contract on which you extend trade credit, assume that you have the choice of denominating the invoice in your currency, the buyer's currency.

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