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belka [17]
2 years ago
6

Which of the following best represents the stream of income that is available to common stockholders?

Business
1 answer:
dmitriy555 [2]2 years ago
7 0
Greeting's!

<span>c. earnings before interest and taxes .
______________________________
</span>
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Procter and Gamble​ (PG) paid an annual dividend of $ 2.87 in 2018. You expect PG to increase its dividends by 8.0 % per year fo
nata0808 [166]

Answer:

$73.47

Explanation:

2.87 is the current dividend paid (D0)

Use that to find dividends for the next 5 years;

D1 = D0(1+g) ; g being the growth rate

D1 = 2.87(1.08) = 3.0996

D2 = 3.0996(1.08) = 3.3476

D3 =3.3476(1.08) = 3.6154

D4 = 3.6154(1.08) = 3.9046

D5 = 3.9046(1.08) = 4.2170

Next, find terminal cashflows;

D6 (yr 2024) = 4.2170 (1.03) = 4.3435

Find Present values of all the dividends using the 8% discount rate with the formula; PV = FV/(1+r)^{n}

PV(D1) = 2.87

PV(D2) = 2.87

PV(D3) = 2.87

PV(D4)= 2.87

PV(D5)= 2.87

PV of terminal value; PV(D6 onwards) = \frac{\frac{4.3435}{(0.08-0.03)} }{1.08^{5} }  = 59.1223

Sum up the PVs to find value per share;

$2.87 +$2.87 +$2.87 +$2.87 +$2.87+ $59.1223 = $73.47

8 0
2 years ago
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were exist325,000 and its yea
Alborosie

Answer:

By how much are customers paying early or late?

  • B) 22.38

Explanation:

Days sales outstanding (DSO) represents the average number of many days it takes a business to collect its accounts receivables.

DSO = (accounts receivables / total credit sales) x 365 days

DSO = ($60,000 / $325,000) x 365 days = 67.38 days

customers are paying late by 67.38 days - 45 days = 22.38 days

8 0
2 years ago
There were 14,058 million shares of this preferred stock outstanding throughout the year. determine the total dividends that ban
Margaret [11]
<span>Bank of America, with 14,058 million common shares outstanding in 2015, and with dividends of $0.05 paid 4 times per share in 2015, the dividends paid overall in 2015 was $2,812 million.</span>
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2 years ago
Roles of three employees in the Agriculture, Food, and Natural Resources cluster are given in this chart. Which best describes t
dsp73

What are the options?

5 0
2 years ago
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Outsourcing of services is:______. a. decreasing in volume and scope. b. increasing in volume and scope. c. increasing in volume
grin007 [14]

Answer:

b. increasing in volume and scope

Explanation:

Outsourcing refers to assigning routine day to day tasks of less significance to an outside firm at a contractual price, with dual motive of saving time and focusing upon more important tasks and also to avail specialized services of an outside firm to ensure efficiency.

For example, a company may outsource it's human resource management function to third party consultants rather than conducting recruitment on it's own.

With the growth in businesses and with increased competition, the need to focus upon strategic tasks has increased which calls for growth in outsourcing function owing to which outsourcing of services has increased both in volume and scope.

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1 year ago
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