Question

Please give me a brief explanation, i do not understand finance!!! Have a great day/night

How do i calculate:

1. DPS for 2010, question one.

2. Financial structure for question two.

option XYZ CORPORATION Balance Sheet as of December 31 2009 and 2010 (In thousands of Dollars) Assets 2009 2010 Current Assets: Cash and marketable securities Accounts receivable $2,760 7,230 $2,760 7,650 Total Fixed Assets: 21,240 22,260 Gross Plant and equipment Less: Depreciation Net Plant and equipment 33,750 4,500 40,800 5,850 34,950 3.300 Other long-term assets Total 3.300 32,550 553.790 38,250 Total assets 2009 2010 Liabilites and Equity Current Liability: Accrued wages and taxes Accounts payable Notes payable $1,800 5,550 $2,250 6,300 4,995 Total Current Liability 13,545 23,805 Stockholders' equity: Preferred Stock Common stock @ Par value Paid in Capital in excess of Par Value Retained Earnings 225 1,800 2,085 17550 225 1,800 2,085 Total Stockholder equity 21,660 $53.790 23,160 Total Liabilities and Equity Note: Firm has 375,000 Common shares outstanding. Common Stock is selling for $54/share.

Answer 1

1)    d) $13.9%

Dividend yield = Dividend per share / current market price

= { [$2820000 / 375000 shares] } / $54

= $7.52 / $54

=13.9%

Note:- Closing Retained Earnings = Opening Retained Earnings + Net earning available for common stockholder - Dividend for common stockholder

19050 = 17550 + 4320 - Dividend for common stockholder

19050 = 21870 - Dividend for common stockholder

Dividend for common stockholder = 21870 - 19050

Dividend for common stockholder = $2820 (In thousand $)

DPS for 2010  = Total common stockholder dividend / Number of common stock outstanding

   = $2820000 / 375000

   = $7.52 per share