1. The RYX financial institution declared a dividend of 59 per share for its common stock. The market value of the stock is P176. Determine the stock yield ratio.
Q: Consider the following data: Common stock ($1 par value) Capital surplus Retained earnings TOTAL…
A: Number of Common Stock ($400000 / $1) 400000 Stock Dividend (400000 shares * 10%) 40000 Current…
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A: Holding period return should be the return dividend and capital gains on the stock.
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A: Stock yield ratio is one of the measure that is used for evaluation of performance of the stock of…
Q: The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Using the information in No. 8 and assuming the share capital dividend declared is 4/40, the amount…
A: Dividend is the amount paid to the shareholder’s for their investment in the business. Dividend paid…
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A: The following computations are done to assess the change in index prices in different years.
Q: a. Show the computation to derive the $391 thousand for common stock. 39,123 V shares X $ 0.01 391 v…
A: Treasury stock or reacquired stock refers to the shares which are bought back from existing…
Q: The market price of a share of common stock at the time of issuance was $19.50, while the market…
A: The stockholders' equity section is represented on the balance sheet of the business. It records the…
Q: Marigold Corp. had the following information in its financial statements for the year ended 2020 and…
A: Book value per share = Common shareholder's equity / Outstanding shares
Q: common stock is P10,000. share, total dividend, and dividend yield ratio. and you own 5 shares. The…
A: Dividend per share = 100 Total dividend = 500 Dividend yield ratio = 10%
Q: Lawrence Industries' beginning-of-year common stockholders' equity was $625,000 and its end-of-year…
A: Formula: Return on common stock holders equity = Net income available to common share holders /…
Q: A corporation purchases 4,608 shares of its own $7 par common stock for $29 per share, recording it…
A: Whenever a corporation purchases some of its outstanding stock from its shareholders and does not…
Q: XYZ comm
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
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A: The perpetual growth model is Gorden Model. As per gorden the current price of share will be…
Q: What is the total stockholders' equity based on the following data? Common stock $904,000 Excess of…
A: Solution: Total Stockholders' Equity = Common stock + excess of issue price over par for Common…
Q: Coaldale Bank has an issue of preferred stock with a $5.15 stated dividend that just sold for $101…
A: Given: Dividend = $5.15 Price = $101
Q: - preferred stock outs cumulative or conver dividends of $300,000 eholders, respectivel-
A: No. of Shares convertible from bonds = (2,000,000/1,000)*5…
Q: You are given the following information: Stockholders’ equity !$3.75 billion, price/earnings ratio !…
A: Given that:Stockholders’ equity (in balance sheet) is $3.75 billion or $3750 MillionCommon shares…
Q: Dale Corporation has the following data: Dale’s rate of return on common stockholders’ equity is a.…
A: Given information is: Net Income = $24,000 Preferred Dividends = $12,000 Average common stockholders…
Q: Sportplace’s net income for the period is $119,600 and its average common stockholders’ equity is…
A: Given information is: Sportplace’s net income for the period is $119,600 and its average common…
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A: Payout Ratio - This ratio shows the amount of dividend paid out from net income.
Q: A company reports the following: Net income Preferred dividends Average stockholders' equity Average…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: The following stock quotations were recently reported in The Wall Street Journal: 49.42 30.92 11.4…
A: The question is based on the concept of reading data of stock quotation from the Wall street…
Q: Corporation X, with a current market value of P62, gave a dividend of P9 per share for its common…
A: The stock yield ratio determines how much cash flow an investor is earning for each rupee invested…
Q: You are given the following information: Book value of stockholders' equity = $5 million;…
A: Given information : The market price of the company stock refers to the value at which a rational…
Q: What is the total stockholders equity based on the following account balances? Common stock…
A: Total stockholders equity = Common stock + Paid in capital excess of par + Retained earnings -…
Q: Trenton Company has provided the following Information: - Net income, $320,000; • Preferred shares…
A: The net income is the net profit of the company earned during the period. The net income includes…
Q: A company reports the following: Net income Preferred dividends Shares of common stock outstanding…
A: Earnings per share show the income earned by the company held in hands of each shareholder of the…
Q: Consider the following data: Amount ($) Common…
A: Number of Common Stock ($400000 / $1) 400000 Stock Dividend (400000 shares * 10%) 40000…
Q: What are the number of shares, par value per share, and market price per share immediately after the…
A: Information Provided: Stock Split = 2-for-1 Common shares = 11,000 Par = $1 Market Price = $16
Q: What is the total stockholders' equity based on the following account balances? Common Stock…
A: Total stockholders equity = Common stock + Paid in capital in excess of par + retained earnings -…
Q: The following information is available for Metloc Rock Corporation: Common Stock ($5 par)…
A: The stock dividend is a method of capitalizing the retained earning. Generally the large stock…
Q: Corporation X, with a current market value of 62, gave a dividend of 9 per share for its common…
A: Stock dividend or Dividend yield ratio tells what percentage of market price of share is given to…
Q: 9. Corporation Gen. Math, with a current market value of P 95.00, give a dividend of P 15.00 per…
A: Current market value of share = P 95 Annual dividend amount = P 15
Q: A company reports earnings per share on common stock of $2.00 when the market price of per share of…
A: Price Earnings Ratio: It is an accounting ratio of a company that establish the relationship between…
Q: A company reports the following: Net income Preferred dividends Shares of common stock outstanding…
A: Formula used: Earnings per share = ( Net income - Preferred dividends ) / Shares of common stock…
Q: The price-earnings ratio of a stock is given by R(P,E)=P/E where P is the price of the stock and E…
A: A ratio that provides information regarding the share price of a company by relating it to the…
Q: a. Show the effect on the equity accounts and per-share data of a 20% stock dividend. The number of…
A: When additional number of shares are issued to existing shareholders in place of cash dividend, it…
Q: The following information have been taken from the X Company Dividends paid on preferred stock…
A: Market Price per share = 30 Net Income before taxes = 150 Income tax = 30% Number of shares of…
Q: A property holdings declared of P9 per share for the common stock. If the common stock oses at P76,…
A: Dividend = P9 Stock closing price = P76
Q: For the year, Peter Petroleum earned $2.1 million in net income. During the year, there were 1.05…
A: A stock is a type of instrument that denotes the holder's ownership stake in the listed firm and is…
Q: A company reports the following: Net income Preferred dividends Average stockholders' equity Average…
A: Formula: Return on stockholders equity = ( Net income / Average stockholders equity ) x 100
Q: The market capitalization of Morning Rose Corp. is $5,580,000 at the company's most recent trade of…
A: Market Capitalization refers to value for which a corporation can be completely purchased by any…
Q: Using the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s…
A: Calculation of estimated price of stock:Answer:Expected price of stock is $82.26
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A: Shareholders are the persons who invest their money into business. In return, company pays them…
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- Assume you are given the following abbreviated financial statement. (look at the picture sent) On the basis of this information, calculate as many liquidity, activity, leverage, profitability, and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.)Use the following data for the Sara Company to calculate the cost of common stocks (Rs), the cost of Preferred stocks (Rps), and the cost of Debt: (Rd)? Item Symbol Value Risk Free Rate Rf 7% Stock Risk B 1.5 Market Return Rm 25% Interest Rate for Debt Rd (B.T) 9% TAX rate T 5% Preferred Stock Dividend D(ps) 10 Preferred Stock Price P(ps) 100 floatation cost ps FC $4 The cost of Preferred stocks: (Rps)? The cost of Debt: (Rd)?What is the formula for Price to Book Value ( MV/BV) ratio ? If Current Price = 126, Total Equity = 20.000.000E , and number of shares =2.000.000 %3D compute the P/ BV and interpret it.
- Use the following data for the Sara Company to calculate the cost of common stocks (Rs), the cost of Preferred stocks (Rps), and the cost of Debt: (Rd)? Item Symbol Value Risk Free Rate Rf 7% Stock Risk B 1.5 Market Return Rm 25% Interest Rate for Deb Rd (B.T) 9% TAX rate T 5% Preferred Stock Dividend D(ps) 10 Preferred Stock Price P(ps) 100 floatation cost ps FC $4 Answer: The cost of common stocks: (Rs)The rate of return on the market stock index is 13 percent. The rate of return on a risk-freebank account is 1%. The B (beta) of stock XYZ is 1.5. Use the data to answer the questionsbelow.a. What is the market risk premium? Show your work.b. What is the cost of equity for XYZ? Show your work.c. What is the stock XYZ risk premium? Show your work.d. Draw the graph of the Security Market Line and show the stock of XYZ on the graph.The end-of-year dividend on stock ABC is expected to be $0.8. The growth rate of dividend isexpected to be 5 percent for ever. The current price of the ABC stock is $10. Use the data toanswer the questions below.e. What is the cost of equity for stock ABC? Show your work.f. Suppose stock KLM has the same end-of-year dividend, dividend growth rate andprice as stock ABC, but the risk of KLM stock is much greater than of the ABC stock.What is your estimate of the cost of equity of stock KLM using the method at part e?Do you agree with the valuation of the cost of…1. You estimate the Fama-French 3-factor model for the two stocks, A and B, and find the following coefficients. You also estimate risk premiums for each factor. Calculate the cost of equity capital (i.e., expected rate of return) for each company using the 3-factor APT model. The risk-free rate is 4%. Stock Mkt A B Risk premiums 1.1 1.0 5% SMB -1.2 -2.0 HML -1.0 -1.5 3%
- 1. Calculate the value of a preferred stock with a fixed annual dividend of $2.45, assuming a discount rate of 9.5%. Solve the problem two different ways: first by using the algebraic formula for a constant dividend preferred stock, then by using the built-in Excel function PV. hint: Use the Preferred Stock example in the posted DDM Excel Examples file as a guide. Feel free to copy the worksheet and make the minor necessary changes to answer this question. 2. Calculate the value of a stock with an expected annual dividend of $2.00 next year and estimated annual dividend growth of 2% per year indefinitely. Assume a discount rate of 8%. Solve the problem two different ways: first by using the algebraic formula for the Gordon Growth Model, then by using Excel to calculate and sum the dividends and their respective present values for the next 150 years. hint: Use the PV Const Growth Dividend example in the posted DDM Excel Examples file as a guide. Feel free to copy the worksheet and make…You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 34.17 Georgette, Incorporated 2.29 69.50 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Hi 77.40 56.56 130.93 50.24 35.00 Stock (Dividend) a. Highest dividend yield b. Lowest dividend yield Acevedo .36 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % Dividend Yield % PE Ratio Close Price Net Change 2.6 6 -.24 5.6 10 -.01 2.2 10 3.07 5.2 6 -.26 1.5 28 .18 % 13.90 41.18 88.97 15.43 ??The reward-to-risk ratio for Stock X, in decimal form, is ______. Round your answer to 3 decimal places (example: if your answer is .04567, you should enter .046). Margin of error for correct responses: +/- .002. expected return (implied by market price) Beta Stock X 9.7% 0.87 S&P500 10% ? T-bonds 3% ?
- Determine the cost of common stock (equity). The T-Bill rate is 5.2%. The Market Return is 12.7%. What is the company's cost of equity capital if the company has a beta of 1.27? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %Astromet is financed entirely by common stock and has a beta of 1.20. The firm pays no taxes. The stock has a price-earnings multiple of 11.0 and is priced to offer a 10.9% expected return. The company decides to repurchase half the common stock and substitute an equal value of debt. Assume that the debt yields a risk-free 4.6%. Calculate the following: Required: a. The beta of the common stock after the refinancing b. The required return and risk premium on the common stock before the refinancing c. The required return and risk premium on the common stock after the refinancing d. The required return on the debt e. The required return on the company (i.e, stock and debt combined) after the refinancing If EBIT remains constant: f. What is the percentage increase in earnings per share after the refinancing? g-1. What is the new price-earnings multiple? g-2. Has anything happened to the stock price? Complete this question by entering your answers in the tabs below. Reg A to E Reg F to G2…Suppose the market risk premium is 4% and the risk-free interest rate is 3% . Using the data in the table, LOADING..., calculate the expected return of investing ina. Starbucks' stock.b. Hershey's stock.c. Autodesk's stock.
