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Nastasia [14]
2 years ago
6

Show Boat Dinner Theatres has paid annual dividends of $0.32, $0.52, and $0.60 a share over the past three years, respectively.

The company now predicts that it will maintain a constant dividend since its business has leveled off and sales are expected to remain relatively flat. Given the lack of future growth, you will only buy this stock if you can earn at least a 19 percent rate of return. What is the maximum amount you are willing to pay for one share of this stock today
Business
1 answer:
Hunter-Best [27]2 years ago
3 0

Answer:

$3.16

Explanation:

Since in the question it is given that the company wants to maintain a constant dividend.

So, the maximum amount you are willing to pay for one share is

= $0.60 ÷ 19%

= $3.16

We simply divide the dividend for 3 year by the earning rate of return so that the maximum price could come

All the other information which is given is not relevant. Hence, ignored it

You might be interested in
A firm has sales of $215,600, costs of $124,800, interest paid of $3,600, and depreciation of $11,400. the tax rate is 34 percen
Tju [1.3M]

Cash Coverage ratio indicates if a firm has enough cash to pay of its interest expenses. The ideal ratio to be maintained by a firm is 1:1. This can be given by the following formula:

Cash Coverage Ratio=\frac{Earnings before Interest and Tax+Depreciation }{Interest Expense}

Cash Coverage Ratio=\frac{215600-124800+11400}{3600}

Cash Coverage Ratio=28.38

Assumption: Cost includes Depreciation, thus depreciation is added back, To find Cash Profits before Interest and Taxes.


6 0
1 year ago
Assume that, on January 1, 2021, Sosa Enterprises paid $3,000,000 for its investment in 36,000 shares of Orioles Co. Further, as
Molodets [167]

Answer:

Acquisition price for 30% share          $3,000,000

($36,000 / $120,000 * 100)

Add: Net income                                   $180,000

($600,000 * 30%)

Less: dividend                                       ($108,000)

($360,000 * 30%)

Less: excess depreciation                    <u>-($45,000)</u>

($1,200,000 / 8 yrs*30%)

Investment reported in Balance         <u>$3,027,000</u>

Sheet 2018

8 0
2 years ago
Which of the following are qualities of successful business writing? Check all that apply.
Fiesta28 [93]

Answer:

The correct answer is letter "A" and "C": Focused on the concerns of the audience; Purposeful.

Explanation:

Business writing is necessary when reports of the financial situation of the company are necessary to be shared. These types of writings are characterized for being <em>objective </em>and <em>straight-to-the-point</em>. Besides, they must be <em>purposeful </em>-which implies there is a major reason why they are being written, and <em>audience orientated</em> -cover the information the audience is requesting to know.

3 0
1 year ago
Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realize
allochka39001 [22]

Answer:

$2,46500

Explanation:

Self-employment Earnings are profits made from carrying on a "trade or business" as a sole proprietor, an independent contractor, or some form of partnership. For a trade or business, to be considered self employment, does not have to be profitable, and it shouldn't be a full time thing but profit must be your motive.

To calculate your self employment income Subtract ordinary and necessary trade or business expenses from the gross income you derived from your trade or business.

Note that, the amount subject to self-employment tax is 92.35% of your net earnings.

Remember you pay income tax on your profits only, not your total income. Subtract your business expenses from your total income. This is the amount you will pay income tax on.

For Karlie

HI taxable Self employment earnings = $85,000

HI Self employment tax = ($85,000 × 0.29)

= $24650

Hence the portion of her earnings subjected to two parts of security tax is #2,46500.

5 0
1 year ago
Read 2 more answers
Which method of analysis does not classify variables as dependent or independent?
Masja [62]

Answer:

C) cluster analysis

Explanation:

Regression analysis. The regression analysis determines the relationship between the two variables. Thus, one of these quantities (X) is given in advance(dependent) and is not random. The second value (U) is the independent and random number. The randomness of the second quantity can be explained for two reasons. First: Measuring the random number U, which depends on the number X, is associated with certain errors; second: The value of U may depend on other uncontrollable factors, in addition to being dependent on the value of the corresponding X value. In this case, we need to talk about the distribution of the random variable U against each value of the X variable.  The main purpose of the regression analysis is to build a mathematical model that takes into account the factors affecting the physical process using experimental data and evaluating its accuracy.  The least squares method is used for statistical estimation of the mathematical model's suitability to experimental data.

Discriminant analysis is a method used in statistics, pattern recognition, and machine learning to find a linear combination of attributes that define or distinguish two or more classes or events. The resulting combination can be used as a linear classifier or more often to reduce the size before classifying.  LDA is closely related to variance analysis (ANOVA) and regression analysis, which try to express a dependent variable as a linear combination of other properties or dimensions. However, while variance analysis uses qualitative independent variables and a continuous dependent variable, discriminant analysis has continuous independent variables and a qualitative dependent variable.

Cluster analysis or clustering is a problem of grouping a number of objects. In this problem, objects must be in some way more similar to those in other groups to accommodate the same clusters (clusters). One of the main problems with data transmission is a common technique used in statistical data analysis. It is also used in machine learning, pattern recognition, image analysis, data retrieval, bioinformatics, data compression and computer graphics.

One-way analysis of variance (ANOVA) is used to calculate the significance of the difference between three and more independent means in a normally distributed series. ANOVA compares the arithmetic means of three or more groups alone; ANOVA result is also significant when at least one of these comparisons is significant. To measure the significance it will have the relation to the regression analysis that's why there will be dependent and independent variables as well.

6 0
1 year ago
Read 2 more answers
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