What''s declared about dividend on stock declaration date

Assignment Help Financial Management

Reference no: EM132011702

1. What's declared about a dividend on a stock's declaration date?

A. Payment data and an ex-dividend date

B. Ex-dividend data and a record date

C. A record date and a payment date

D. A closing date and an ex-dividend date

2. Super Fun Toys, Inc., has the following balance sheet:

Assets Liabilities and Equity

Current assets $3,500,000 Current liabilities $2,400,000

Fixed assets 5,100,000 Long-term debt 2,100,000

Equity 4,100,000

Total assets $8,600,000 Total liabilities & equity $8,600,000

Suppose Super Fun Toys, Inc., has sales of $8.9 million for the year just ended, the profit margin of the firm is 16 percent with a retention rate of 28 percent, and the firm expects sales of $9.8 million next year. If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Super Fun Toys need from external sources to fund the expected growth?

A. $689,500

B. $368,484

C. $187,925

D. $552,800

3. Up & Down Industries doesn't have any taxes to pay and has $348 million in assets, currently financed only with equity. The equity is worth $11 per share with 8 million shares outstanding, and book value of equity is equal to market value of equity. Assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as follows:

State: Pessimistic; Probability = 45 percent; Expected EBIT in state = $15 million

State: Optimistic; Probability = 55 percent; Expected EBIT in state = $19 million

The company is considering switching to a 40 percent debt capital structure and has determined that it would have to pay a 10-percent yield on perpetual debt in either event. What would the level of expected EPS in either scenario be if the firm switches to the proposed capital structure as compared to its current structure?

A. Pessimistic state: $0.27 EPS; Optimistic state: $0.77 EPS

B. Pessimistic state: $0.35 EPS; Optimistic state: $0.88 EPS

C. Pessimistic state: $0.23 EPS; Optimistic state: $1.06 EPS

D. Pessimistic state: $0.32 EPS; Optimistic state $1.12 EPS

4. The portion of the necessary increase in assets to support an increase in sales that will need to be funded from external capital is called

A. capital deficit.

B. excess funding requirement.

C. funds from operations.

D. additional funds needed.

Reference no: EM132011702

Questions Cloud

Contribute each year to fund retirement : You will contribute the same amount to the plan at the end of every year that you work. How much do you need to contribute each year to fund your retirement?

Major factor that affects life cycles : In health care, major factor that affects life cycles is. he value brand gives company through associations made by consumer is referred to as its brand equity.

Contribute each year to fund your retirement : You will contribute the same amount to the plan at the end of every year that you work. How much do you need to contribute each year to fund your retirement?

Calculate the current price per share for the firm : Whatever the firm does not reinvest into the business it pays as dividends to shareholders. Calculate the current price per share for the firm.

What''s declared about dividend on stock declaration date : What's declared about a dividend on a stock's declaration date?

What will its annual after-tax interest costs be : Assuming a 40% tax rate, what will its annual after-tax interest costs be?

Rational investor to hold fully diversified portfolio : Explain in detail why is it important for a normal, rational investor to hold a fully diversified portfolio.

Prepare production-purchasing and cash budgets : Prepare PRODUCTION, PURCHASING, and CASH budgets for Let’s Go for the first six months of 2011 using the formats presented in the case.

Changes according to changes in the company policies : A theory stating that a company's stock price changes according to changes in the company's policies is known as the

User Account

All Pages