How does the value of a share of stock relate to dividends ?

Q: Laursen plc has announced a 1 for 3 rights issue at a subscription price of £2. The current price of...

A: Theoretical value of the right =(Stock Price - Rights subscription price per share) / (Number of rig...

Q: If a firm with $49,000 in fixed costs breaks even on 7,000 units, how many units must the firm sell ...

A: Whenever sales generated and costs incurred within a specific period are equal, a corporation breaks...

Q: Which one of the following is part of other comprehensive income (OCI)? Multiple Choice   Sale of c...

A: other comprehensive income (OCI) means those income , expenses , gains and losses which are yet to b...

Q: On January 1, 2021, Grace Corp. created a special building fund by depositing a single sum of P300,0...

A: The present and future value: The value of an amount to be received or paid at some time in the futu...

Q: You are holding a stock that has a beta of 3.37 and is currently in equilibrium. The required return...

A: Beta = 3.37, Expected Return = 31.84% and, Risk Free Rate = 7.0%

Q: using a capitalization of 10% a commercial property is valued at 420000. the expenses are 30% of the...

A: Capitalization rate = 10% Property Value = 420,000 Expenses = 30% of gross income    

Q: 8. Calculate the capitalized cost of a project that has an initial cost of P 3,000,000 and an additi...

A: Initial cost = P 3,000,000 Additional cost every 10 years = P 1,000,000 Annual cost = P 100,000 for ...

Q: Consider a five-year, default-free bond with annual coupons of 5% and a face value of $1,000 and ass...

A: Face value (F) = $1000 Annual coupon (C) = 5% of $1000 = $50 n = 5 years Let r = YTM

Q: TRUE OR FALSE An account is increased by an entry on the side of its normal balance and deceased by...

A: All assets, expenses and drawings accounts will have normal balance as debit balance. All liabilitie...

Q: Belinda invested a sum of money for her two-year-old child education in the amount of fifty thousand...

A: Compounding is a strategy for calculating the future value (FV) of current cashflows using a mention...

Q: the interest rate in % compounded annually if t pur answer in 3 decimal places.

A: Given information : Compound factor  1.969 Years 8 Since the question have not mentioned any...

Q: How long will it take P 3,000 pesos to accumulate P 3,500 in a bank savings account at 0.25% compoun...

A: Present value (PV) = P3000 Future value (FV) = P3500 Interest rate = 0.25% Monthly interest rate (r)...

Q: ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investmen...

A: Initial Investment = 450,000 Discount Rate = 14% Dividend / Revenue = 100,000 for 1st year and inter...

Q: Calculate annual cost of this worker for the company and its % of mark up.

A: Annual cost of an employee to a company is the total expense a company pays for an employee. It incl...

Q: In its first 10 years a mutual fund produced an average annual return of 19.17%. Assume that money i...

A: Future value is the total amount of money at a specified point of time.

Q: An amount of P 250,000 is deposited now into a savings account that earns 8% per year. This amount w...

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have...

Q: Dalagang Pilipina Company needs ₱5,000,000 short-term credit for 90 days. To produce the amount, the...

A: The company wants 5,000,000 in hand after 15% discount on issued amount and after incurring 90,000 (...

Q: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have b...

A:

Q: *The sinking fund factor is the reciprocal of the uniform-series compound amount factor.

A: The sinking fund factor is a measure to calculate the future value of equal annual cash flows series...

Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its b...

A: To Find: WACC

Q: Suppose that you purchase the T-bill maturing on October 24, 2013, for $9,998.599. The T-bill mature...

A: T-bills are the short term investment securities issued by the government. The maturity period of th...

Q: Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow $ 1,...

A: Future value at year 4 = [Year 1 cash flow x (1 + r)3] + [Year 2 cash flow x (1 + r)2] + [Year 3 cas...

Q: Styles QUESTION 3 Alan, a chartered financial analyst (CFA), is willing to invest two stocks, Bloom ...

A: Expected Return is the return that investor expects from a stock under various conditions based on t...

Q: Using AFN formula in financial forecasting approach, given the following accounting information assu...

A: The liabilities which are referred as the obligations of business entity when immediately changes be...

Q: example of simple interest and explain in 5 sentences when and where to apply this

A: Interest can be defined as the fee paid or received when borrowing, lending or investing a certain a...

Q: Tatsumi invested Php 10,000 now for the college education of his three-year old son. If the fund ear...

A: Amount invested today (A) = Php 10000 Age of son today = 3 years He needs to withdraw for 4 years (m...

Q: Mr. Talukder retired very recently receiving 70% lump sum of his total retirement payment of 5 Milli...

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...

Q: (Related to Checkpoint 6.2) (Present value of an ordinary annuity) Nicki Johnson, a sophomore mechan...

A: Annuity refers to a series of payments with a fixed number of instalments of the same value and made...

Q: Locust Software sells computer training packages to its business customers at a price of $101. The c...

A: Hi, Thanks for the Question. Since you asked multiple sub parts question, we will provide the soluti...

Q: Which of the type of insurance pays benefits to workers who suffer an injury on the job? Select the ...

A: Insurance is an agreement in which an individual or organization obtains financial security or compe...

Q: 3. Mr. Wales borrowed P2,000.00 from Mr. Yap on June 1, 1928 and P500.00 on June 1, 1930, agreeing t...

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for y...

Q: Claire needs to borrow $7000 to pay for NHL season tickets for her family. She borrows from a credit...

A: Savings are the resources that remain after expenditure and other obligations have been deducted fro...

Q: As a financial manager how do you make decisions that can help raise capital for the firm?

A: The role of the finance manager in any organization is very crucial he is entrusted to raise finance...

Q: Bettis Corporation issued 7 percent bonds 3 years ago with 22 years until maturity.  The coupons are...

A: Yield to call refers to the total return earned by the bondholders if the bond is held until the cal...

Q: A Honda car can be purchased by paying a down payment of P150,000 and the balance to be paid with tw...

A: The present value of down payment and all the installments paid will be equal to the initial price o...

Q: Ryngard Corp’s sales last year were $43,000 and it’s accounts recivable were $16,000. What was its D...

A: The question is related to Average Collection period. The Average Collection period or Days Sales Ou...

Q: What is the present value of the following cash flows, if the discount rate is 10% annually? Beginni...

A: The present value of the cash flow can be calculated by taking the future cash flows and discounting...

Q: 1. You buy a call option on a stock for $7 with a strike price of $60. The stock currently sells for...

A: For calculating profit or loss on options, we have to compute selling price with strike price. Curre...

Q: 2. Suppose you bought a condo for $200,000 financing it with a $40,000 down payment of your own fund...

A: 1. Calculation of Return on Assets (ROA) as follows: Cost of Condo = $200,000 Down payment = $40,000...

Q: Provide worded problem about compound interest

A:

Q: A common stock just paid a dividend of $0.50. The dividend is expected to grow at 6 % for 4 years, i...

A: The Supernormal Growth Model is the model in which the value of the stock is measured through its di...

Q: Many corporations do not pay dividends, why are investors willing to by their stock?

A: There could be two types of investments with respect to dividends. One, the stock pays regular divid...

Q: The Merritt Committee Investigation looked into solutions for dealing with:

A: The Merritt Committee Investigation was done in the year 1910 and this followed the Armstrong Invest...

Q: How does compound interest affect the loans you undertake? For example, how would this  affect stude...

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an...

Q: 14. The GJE company has a contract with a hauler to transport its naphtha requirements of 3,600,000 ...

A: Working Note #1 Calculation of Depreciation: Depreciation = (First cost - Salvage value) / Life Depr...

Q: If you paid $68 to a loan company for the use of $1043 for 39 days, what annual rate of interest did...

A: Interest = Principle * Interest rate * Time of loan / 360 days

Q: One of the characteristics of an insurable risk is that a risk needs to be determinable and measurab...

A: An insurable risk class is a group of people or businesses with similar characteristics that are use...

Q: Sales Estimated Fixed cost Variable Fixed cost Total cost price Sales per unit cost $1.00 1,600,000 ...

A: Net profit is the amount of income that remains after all expenses have been met. The expenses may b...

Q: accumulate the total debt and pay it one time to his friend. How much money must John set aside ever...

A: Present Value: It is the present worth of the future stream of annual cash flows. The present value ...

Q: What will $248,000 grow to be in 12 years if it is invested today in an account with an annual inter...

A: Future Value = P(1+r/n)^ntWhere P = Principal = $248,000R = Rate on interest = 15%N = number of time...