The following are sales revenues for a large utility company for years 1 through 11. Forecast revenue for years 12 through 15. B
ecause
we are forecasting four years into the future, you will need to use linear regression as your forecasting method. (Enter your answers in
millions.)
YEAR
01 OUA
REVENUE (MILLIONS)
$4,869.
5,069.9
5,522.7
5,734.3
5,503.6
5.195.1
$5, 101.3
5,107.0
5. 552.3
5,744.8
5,863.0
Forecast
Period
12
13
15
we are forecasting four years into the future, you will need to use linear regression as your forecasting method. (Enter your answers in
millions.)
YEAR
01 OUA
REVENUE (MILLIONS)
$4,869.
5,069.9
5,522.7
5,734.3
5,503.6
5.195.1
$5, 101.3
5,107.0
5. 552.3
5,744.8
5,863.0
Forecast
Period
12
13
15
1 answer:
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Answer:
Dividend Each Year shall be
Year 2015 2016 2017 2018
Preference $20,000 $28,000 $42,000 $30,000
Equity $0 $0 $158,000 $320,000
Total Dividend
Preference = $120,000
Equity = $478,000
Explanation:
When the preference dividends are cumulative in nature the dividends shall be paid each year of the rate specified, in case not paid the, it is carried forward.
In the given case, preference dividend = 80,000 shares $5
7.5% = $30,000
<u>Thus, in 2015</u>
Dividend to preference = $20,000
Dividend to Equity = $0
Also $30,000 - $20,000 = $10,000 shall be carried forward.
<u>2016</u>
Dividend to preference = $10,000 Arrears
Current year = $28,000 - $10,000 = $18,000
Carry forward = $30,000 - $18,000 = $12,000
Dividend to Equity = $0
<u>2017</u>
Dividend to preference = $12,000 Arrears
Current year = $30,000
Dividend to Equity = $200,000 - $30,000 - $12,000 = $158,000
<u>2018</u>
Dividend to preference = $30,000
Dividend to Equity = $350,000 - $30,000 = $320,000