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The stock has an annual dividend of Refer to the table below for DRK, Inc. The...
Problem 3-1 Stock Quotations (LO2, CFA3) You found the following stock quote for DRK Enterprises, Inc.,...
Problem 3-1 Stock Quotations (LO2, CFA3) You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.93, which resulted in a dividend yield of 1.30 percent. DAILY Close Company DRK Enterprises Symbol DRK Vol 18,649, 130 Chg .26 %Chg .36% YTD %Chg 8.73% High 78.19 52 WEEK Low 51.74 %Chg 11.0% a. What was the closing price for this stock yesterday? (Do not round intermediate...
You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also...
You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.93, which resulted in a dividend yield of 2.5 percent. Assume the company has 80 million shares of stock outstanding and a P/E ratio of 27. DAILY YTD Company Symbol Vol Close Chg %Chg %Chg DRK Enterprises DRK 18,649,130 ?? .26 .45% 8.73% What was net income for the most recent four quarters? (Do not...
1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If...
1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors' required rate of return is 10 percent, what is the market value of the shares? If the required return declines to 6 percent, what is the change in the price of the stock? 2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different? a. MN, Inc., $8 preferred ($100 par) b....
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc., is exploring...
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc., is exploring ways to expand the number of shares outstanding in an effort to reduce the market price per share to a level that the firm considers more appealing to investors. The options under consideration are a 20% stock dividend and, alternatively, a 5-for-4 stock split. At the present time, the firm's equity account and other per-share information are given as follows: a. Show the effect...
Health Systems Inc. is considering a 10 percent stock dividend. The capital accounts are as follows:...
Health Systems Inc. is considering a 10 percent stock dividend. The capital accounts are as follows: Common stock (4,000,000 shares at $10 par) $ 40,000,000 Capital in excess of par* 25,000,000 Retained earnings 45,000,000 Net worth $110,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the shares created times (Market price – Par value). The company’s stock is selling for $45 per share. The company had total earnings of...
An analyst has been following American Dream stock. He projects the following dividends for the next...
An analyst has been following American Dream stock. He projects the following dividends for the next three years YEAR Dividend $161 $2.20 $1.18 The analyst notes that American Dream stock has a required retum of 10.30%. The analyst projects that dividends will grow at a constant rate of 5.00% per year after year 3. What is the current price of the stock if his assumptions are correct? Answer format: Currency: Round to: 2 decimal places Caskey Inc. is experiencing a...
For question 2.3 Do I buy the stock or do not buy? Im not sure if...
For question 2.3
Do I buy the stock or do not buy? Im not sure if i go by
Walmarts pe ratio (23.83) being greater than industry average 20
(buy) or go by $100 being less than 119.83 (do not buy)
walmarts pe ratio is 23.83
2. Use the following three methods to determine if you will purchase this stock at current market price. Assume market interest rate (r) as 12%, constant dividend growth rate (g) as 10%, and industry...
Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000...
Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 3% stock, $160 par, and 67,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $64,400; second year, $137,600; third year, $171,250; fourth year, $198,510. Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places....
Tyler Inc.'s most recent annual dividend was $3.55 a share. The firm has been growing at...
Tyler Inc.'s most recent annual dividend was $3.55 a share. The firm has been growing at a consistent 4% rate for several years, but analysts generally believe better times are ahead and future growth will be in the neighborhood of 5%. The stock is currently selling for $80. Stocks similar to Tyler earn returns ranging from 8% to 10%. Calculate value for a share of Tyler at interest rate of 8%. Round the answer to two decimal places. $ Calculate...
A corporation has the following stockholders' equity accounts at the end of the current fiscal year,...
A corporation has the following stockholders' equity accounts at the end of the current fiscal year, after all closing entries have been posted: Common Stock, $10 par, $2,000,000; Paid-In Capital in 8. cess of Par Common Stock, $375,000; Paid-In Capital from Treasury Stock, $18,000; Retained Earnings, $1.285,000. The earnings for the current year, during which there were no un were $350,000. (a) (b) Compute the earnings per share of common stock. Assuming that the market price of the common stock...
Problem 3-1 Stock Quotations (LO2, CFA3) You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.93, which resulted in a dividend yield of 1.30 percent. DAILY Close Company DRK Enterprises Symbol DRK Vol 18,649, 130 Chg .26 %Chg .36% YTD %Chg 8.73% High 78.19 52 WEEK Low 51.74 %Chg 11.0% a. What was the closing price for this stock yesterday? (Do not round intermediate...
1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors' required rate of return is 10 percent, what is the market value of the shares? If the required return declines to 6 percent, what is the change in the price of the stock? 2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different? a. MN, Inc., $8 preferred ($100 par) b....
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc., is exploring ways to expand the number of shares outstanding in an effort to reduce the market price per share to a level that the firm considers more appealing to investors. The options under consideration are a 20% stock dividend and, alternatively, a 5-for-4 stock split. At the present time, the firm's equity account and other per-share information are given as follows: a. Show the effect...
An analyst has been following American Dream stock. He projects the following dividends for the next three years YEAR Dividend $161 $2.20 $1.18 The analyst notes that American Dream stock has a required retum of 10.30%. The analyst projects that dividends will grow at a constant rate of 5.00% per year after year 3. What is the current price of the stock if his assumptions are correct? Answer format: Currency: Round to: 2 decimal places Caskey Inc. is experiencing a...
For question 2.3
Do I buy the stock or do not buy? Im not sure if i go by
Walmarts pe ratio (23.83) being greater than industry average 20
(buy) or go by $100 being less than 119.83 (do not buy)
walmarts pe ratio is 23.83
2. Use the following three methods to determine if you will purchase this stock at current market price. Assume market interest rate (r) as 12%, constant dividend growth rate (g) as 10%, and industry...
Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 3% stock, $160 par, and 67,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $64,400; second year, $137,600; third year, $171,250; fourth year, $198,510. Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places....
A corporation has the following stockholders' equity accounts at the end of the current fiscal year, after all closing entries have been posted: Common Stock, $10 par, $2,000,000; Paid-In Capital in 8. cess of Par Common Stock, $375,000; Paid-In Capital from Treasury Stock, $18,000; Retained Earnings, $1.285,000. The earnings for the current year, during which there were no un were $350,000. (a) (b) Compute the earnings per share of common stock. Assuming that the market price of the common stock...
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