Introduction A dividend is termed as a portion of a firm’s earnings that is returned to its shareholders. Dividends offer a further motif for investors to hold or even increase their investments. A lot of companies‚ mature or young‚ large or small‚ pay stable dividend. It is true that high dividend yield is important for current investors because it indicates‚ to some degree‚ a firm’s financial well being‚ but paying 100% of its earnings as dividend is not financially wise. Instead of paying dividends‚ fluid
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Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company’s outstanding bonds is 9% and the company tax rate is 40%. Percy’s CFO has calculated the company’s WACC as 9.96%. What is the company’s cost of common equity? Q2: Tunney Industries issued preferred stock at a price of $47.50 a share. The issue is expected to pay a constant annual dividend of $3.80 a share. What is the company’s cost of preferred stock‚ Kp? Q3: Javit & Son’s common stock is currently
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8 3.3 sales (increase from continuing operations) dividends sales fully franked dividends % p total group sales ‚130m 55 4.7 $ 3.0 % p i ncrease in earnings before interest and tax from continuing operations to $3‚352.1 million 3.6 % p increase in net profit after tax from continuing operations to $2‚182.9 million 126 %p % p ¢ 3.1 14.5 increase in earnings per share from continuing operations to 178.63 cents decrease
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University of Hong Kong Dividend Policy Bank distributed a $6.30 dividend per share in 2008. If you purchased shares in Hang Seng Bank at $87 per share‚ the company’s dividend yield was 7.2% ($6.30/$87) which is much higher than the bank deposit rate. Dividend payout ratio is another important indicator: Dividend payout ratio = Dividend per share ÷ Earnings per share Dividend policy is the policy used by a company to decide how much it will pay out to shareholders in dividends. In your financial
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Point of Sale And Inventory Monitoring System Formilleza‚ Oliver Jover‚ Von Jovi Trompeta‚ Melody Mendoza‚ Eddie Pama‚ Reylandier BSIT-3 Go Pun & Company‚ Inc. Point of Sale and Inventory Monitoring System Table of Contents I. Introduction a. History of the Organization b. Nature of Business c. Organizational charts d. Mission and Vision e. Corporate Objectives Objectives of the Study Scope of the Study Assessment of the current system a. Overview of the current system b. Problem
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Question 1 1. Jack ’s Construction Co. has 80‚000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.5%. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4% and the market risk premium is 8%. Jack ’s tax rate is 35%. What is Jack ’s weighted average cost of capital? Answer | | 7.10% | | | 7.39% | | | 10.38% | | |
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MEASURING OUTSTANDING REVENUE AS WEEKS BILLING OUTSTANDING By SACHIN GHOGLE Introduction Financial management focuses in finding the value in accounts receivable by emphasizing on improving the collections process and hence accelerating the cash flow. ‘Revenue Outstanding’ is the amount due from the customer as a result of an organisation’s normal business operation‚ that is‚ it is the amount that has been billed by organisations and is due‚ but which has not been collected. The management of
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meat industry used these improvements to increase profits while the treatment of their factory workers‚ animals‚ and farmers remain inhumane and cruel. The documentary Food Inc.‚ directed by Robert Kenner‚ sheds light on the modern hidden issues of the meat industry and how it impacts consumers in the short and long term. Food Inc. effectively enlightens consumers of the daily crimes committed by the meat industry with the film’s structure‚ dialogue‚ and appeal to the views rhetoric. The producer bears
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1. What is the offering concept? What does this mean for Dr. Pepper/7Up Inc.? An offering consists of the benefits or satisfaction provided to target markets by an organization. It consists of a tangible product or service (a physical entity) plus related services (delivery and setup)‚ brand name(s)‚ warranties or guarantees‚ and packaging. Focusing on the term offering rather than just the product or service forces the marketer to go beyond the single tangible entity being marketed and to consider
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maturing in 7 years‚ pay 8% interest on a $1‚000 face value. However‚ interest is paid semi-annually. If your required rate of return is 10%‚ what is the value of the bond? How would your answer change if the interest were paid annually? 7) Sharp Co. bonds are selling in the market for $1‚045. These 15 year bonds pay 7% interest annually on a $1‚000 par value. If they are purchased at the market price‚ what is the expected rate of return? 8) You own a bond that pays $100 in annual interest‚ with
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