MS1(1 - d) Where A* = Total Assets = 3,000,000 S0 = current sales = 5,000,000 ΔS = change in sales = 1,000,000 L* = spontaneous liabilities = accounts payable + accruals = 500,000 M = Profit margin = 5% S1 = sales next year = 6,000,000 d = dividend payout ratio = 70% AFN =(3,000,000/5,00000)X1,000,000 – (500,000/5,000,000) X 1,000,000 – 5%X6,000,000X(1-0.7) = (0.6)($1,000,000) - (0.1)($1,000,000) - ($300,000)(0.3) = $600,000 - $100,000 - $90,000 = $410,000. (12-2) Refer to Problem
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Average Stock Holders Equity= Preferred Stock Divendends= Weighted Average Common Shares Outstanding= Total Current Liabilities= Common Stock Cash Dividends= Stock Holders Equity (Beginning of the period)= Stock Holders Equity (End of the period)= Average Stock Holders Equity= Net Cash from Operation(income)= Capital Expenditures= Total Assets= Cash Dividends Paid= Free Cash Flow= Average Current Liabilities= Average Total Liabilities= Earning Per Share (Basic)A/B= Earning Per Share (Diluted)A/C= Average Market Price Per Share June 31
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* | | | Shares eligible for dividends are:Answer | | | | | Correct Answer: | the number of shares outstanding. | | | | | * Question 2 10 out of 10 points | | | A company declares a 4% share dividend when there are 4.0 million ordinary shares when the current market price is $1 per share. Which of the following will be the effect of the share dividend?Answer | | | | | Correct Answer: | Retained earnings will decrease by $.16 million and contributed capital
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recovery. Going forward, I believe there are a number of positives for the company and the stock price will continue to move higher. My optimism is based on the recent movements made by GE and a change in strategy, which I believe will pay sizeable dividends in the future. 43,682 people received this article by email alert Add your email to get alerts on GE too: Get email alerts on GE » What will Lufkin Acquisition Bring to the Table? On 8th April, GE announced its intention to pursue the acquisition
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and dividends are not necessary. (p. 325) 2. Investors purchase stock for the three reasons listed below. Explain how each reason could help you reach your investment goals. |Dividend income | |Dollar appreciation | |Possible increased value from stock splits | Basically, there are three ways that an investor can make money with a common stock investment: (1) income from dividends; (2)
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1. (TCO A) Which of the following statements is NOT correct? (Points : 5) a) The corporate valuation model can be used both for companies that pay dividends and those that do not pay dividends. b) The corporate valuation model discounts free cash flows by the required return on equity. c) The corporate valuation model can be used to find the value of a division. d) An important step in applying the corporate valuation model is forecasting the firm's pro forma financial statements. e) Free cash
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Finance 560 Securities Analysis Course Project: Stock Analysis – Cisco Systems, Inc. (CSCO) Company’s Summary Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. It offers routers that interconnects public and private IP networks for mobile, data, voice, and video applications; switching products, which provide connectivity to end users, workstations, IP phones
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operating costs which has contributed to its current liquidity challenges. Ms. Pundir is biased toward addressing shareholders’ needs rather than pursue what is good for business survival. It is reported that the company had previously declared high dividend payments to its shareholders because Pundir believed that it was risky to leave excess funds to the company. Similarly the company does not value its employees, the company prefers hire people in high season, and firing them in low seasons.
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investments. Different from a cash dividend, the returned cash will be taxed as capital gain and therefore achieves tax efficiency for the shareholders. When looking at the company’s point of view, they are able to lower the dividend payment because there will be an increase in number of shares. This would result in the dividend amount per share to most likely decrease and the total amount allocated to a dividend payment to stay constant. This will make dividends for the new Ford shares to go down
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together. We also discussed how we use ratios, vertical and horizontal analysis to deciphering financial statements. Finally discuss was the preferred and common stocks issued, placed as journal entries on the financial statements and the paid out in dividends. With all these topics we saw why the financial statements are compiled the way they are by giving us a better understanding of how they work for the companies. Financial statements are analyzed by corporations so that they are able to identify
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