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Kazeer
4 days ago
10

The firm has just declared a dividend of $1.09 per share for the current fiscal year. The firm has earnings per share of $2.11,

and 225,000 shares outstanding with a market price of $31.17 per share prior to the ex-dividend day. Ignore taxes. As a result of this dividend, the: A) the current dividend yield is 51.66% B) retained earnings will increase by $245,250. C) the current dividend payout ratio is 3.497% D) earnings per share will increase to $3.20. E) price-earnings ratio will be 14.26 ex-dividend.
Business
1 answer:
stepan [3.2K]4 days ago
4 0

Response: E) The price-earnings ratio post-dividend will be 14.26.

Reasoning:

Typically, stock prices drop by the dividend amount on the ex-dividend date.

This indicates that this stock price will decrease to:

= 31.17 - 1.09

= $30.08

The Price to Earnings ratio becomes= Stock price/ Earnings per share

= 30.08/2.11

= $14.26

Thus, Option E is the correct answer.

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The owner of an interior lot has received notice that the city intends to place a sidewalk across his property. The lot measures
marusya05 [3428]

Answer:

He will incur a charge of $2000 due to a special assessment tax for the sidewalk.

Explanation:

The information provided indicates that the lot in question is an interior one, suggesting we should assess only one dimension of the property since the sidewalk is constructed at either the front or the rear.

The lot size is 100 feet in width and 500 feet in length.

The cost for constructing the sidewalk is $40 per linear foot.

The city will pay half of the total expense.

<p.to calculate="" the="" cost="" for="" width="" of="" lot:="">

100 feet multiplied by $40 equals $4000.

The city contributes 50% of the expense, meaning the homeowner is responsible for the remaining 50%.

Thus, the homeowner's share will be 50% of $4000, which is calculated as 0.5 times $4000, yielding $2000.

He will incur a charge of $2000 due to a special assessment tax for the sidewalk.

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7 0
1 month ago
SDX Alliance is a large company that sells computers, computer components, and software. Ralph is hired as an entry-level softwa
soldi70 [3439]
SDX Alliance needs to validate Ralph's statement that his previous employer is no longer operating. They should reach out to the owner of the defunct company to initiate the process of acquiring the copyright, while simultaneously reviewing the code. Alternatively, SDX can continue reviewing the code as Ralph works on modifying it based on the original copyrighted version. Due to the passage of time, updates to the original code may be necessary. If sufficient modifications are made to incorporate recent advancements, SDX could implement and even secure copyright on the revised code.
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13 days ago
Rizzo Company has debentures ($1,000 par) outstanding that are convertible into the company's common stock at a price of $25. Th
Mariulka [3472]

Answer:

A. $880

B. -$752.23

Explanation:

To find the conversion value of the issue, we start with this calculation

The initial step is to compute the Conversion ratio using the following formula

Conversion ratio = Par value of security/ Conversion price

Substituting, we find

Conversion ratio = $1,000/$25

Thus, Conversion ratio = 40

Next, we determine the Conversion value with this formula

Conversion value = Conversion ratio * Conversion price

Substituting gives

Conversion value = 40*$22 per share

Therefore, the conversion value of the issue equals $880

B. Now calculating the Straight bond value of the issue

Using a financial calculator for Present Value (PV)

PMT = 8%*1,000 = 80

N = 12 years

1/Y = 12%

FV = 1,000

Thus, PV = -$752.23

This means the Straight bond value of the issue is -$752.23

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If as a part of its business, a company routinely handles toxic materials, all employees who come into contact with the hazardou
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Like A Wrecking Ball is a demolition company. At the end of a project, they presented their client with an invoice for $18,000 a
arsen [3236]

Answer:

Explanation:

The journal entry is presented beneath:

Cash A/c $18,000

    To Service revenue A/c $18,000

(Accountable for the receipt)

In this transaction, we debit the cash account because cash has been received and credit the service revenue since the service has been performed. Both entries are made for the amount of $18,000 to ensure accurate recording.

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