What is their net income

Assignment Help Financial Management
Reference no: EM13873366

A Company has 12,000,000 in sales. COGS are 40% of sales. Operating costs are $1,200,000plus depreciation expense of $80,000 and interest expense $80,000. Tax rate is 40%. They have 1,000,000 shares of stock outstanding.

1. What is their net income?

2. If they retained 80% and paid 20% in dividends, what is their dividend payout?

3. IF they had EPS of $2.40 last year, how does this year's EPS compare to last year's?

Reference no: EM13873366

Questions Cloud

What is the cost of Royals retained earnings : Royal Mediterranean Cruise Line's common stock is selling for $22 per share. The last dividend was $1.20, and dividends are expected to grow at a 6% annual rate. Flotation costs on new stock sales are 5% of the selling price. What is the cost of Roya..
Risk return theory states that the higher the risk : Risk return theory states that the higher the risk, the higher the required return. The present value of $50,000 to be received 10 years from now at 8% interest is about $23,160. The current share price is $25, most recent dividend is $1.25, so divid..
Using constant growth valuation formula : Stock G’s last dividend was $1.60 per share and is expected to grow at a rate of 4%. Using constant growth valuation formula, what is the expected price of the stock if my required return is 12%?
Semi annual coupon bond-what is the coupon rate on bond : A 15-year, semi annual coupon bond is priced at $1,102.75. The bond has a $1,000 face value and a yield to maturity of 5.33 percent, and was issued 3 years ago. What is the coupon rate on the bond?
What is their net income : A Company has 12,000,000 in sales. COGS are 40% of sales. Operating costs are $1,200,000plus depreciation expense of $80,000 and interest expense $80,000. Tax rate is 40%. They have 1,000,000 shares of stock outstanding. What is their net income? If ..
About the cost of capital : Cost of capital is- the average cost of the firm's assets, the hurdle rate set by the board of directors, the coupon rate of debt
Assumming you finance through dealer what will payments be : A new truck costs $34,000 and dealer offers 1.9% APR financing for 48 months (payments made at the end of month) Assumming you finance through dealer what will payments be?
Rate of return to differ from the companys cost of capital : Two factors that cause the investor's required rate of return to differ from the company's cost of capital are_____.
What is the after-tax cost of the firms interest expense : Firm A has EBIT of $400,000, Earnings before Taxes of $280,000, and Earnings after Taxes of $168,000. What is the AFTER-TAX cost of the Firm's interest expense?

Reviews

Write a Review

Financial Management Questions & Answers

  Manipulating both the texas and california power markets

The pinnacle of all financial scandals is arguably the "perfect storm" associated with the former Enron Corporation, which became public knowledge in October 2001. Manipulating both the Texas and California power markets

  What is the optimal amount of each special ingredient

What is the optimal amount of each special ingredient for each drink and what is the optimal cost of the special ingredients in total?

  Supplement the retirement programs that are being funded

Patty Scheme lenberg, a 45-year-old woman, wishes to accumulate $300,000 over the next 15 years to supplement the retirement programs that are being funded by the federal government and her employer. She expects to earn an average annual return of ab..

  How much will she have on a yearly basis for college career

Mr. J. J. Parker is creating a college fund for his daughter. He plans to make 15 yearly payments of $1500 each with the first payment deposited today on his daughter’s first birthday. Assuming his daughter will need four equal withdrawals from this ..

  What is the estimated value of this stock today

A company is expected to pay their first annual dividend 2 years from now. That payment will be $1.50 a share. Starting in Year 3, the company will increase the dividend by 5% per year. The required return from common shareholders is 15%. What is the..

  Best estimate of the stocks current market value

Burke Tires just paid a dividend of D0 = $1.50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the..

  Project capital budgeting analysisthe sl energy group is

project capital budgeting analysisthe sl energy group is planning a new investment project which is expected to yield

  Economic life using the straight-line method

Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $3.81 million. The marketing department predicts that sales related to the project will be $2.51 million per year for the..

  Target capital structure of debt and equity

David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 11%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 11.18%. What is the com..

  Standard deviation of the portfolio return

You have a 2-stock portfolio with a total value of $510,000. $195,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 19.90%, Stock B is 9.35%, and correlation between Stock A and Stock B is –0.60,..

  Expected return-discrete distribution-required rate of retun

The market and Stock J have the following probability distributions:  Calculate the expected rates of return for the market and Stock J. Calculate the standard deviations for the market and Stock J. As an equity analyst you are concerned with what wi..

  Total cost is used to determine the price

Sosa Company has $39 per unit variable costs and $1,900,000 per year fixed costs. Demand is estimated to be 138,000 units annually. What is the price if markup of 35% on total cost is used to determine the price?

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