Homework Answers
1) Required Return, r = Rf + Rp = 4.1% + 11.1% = 15.2%
Value of stock = Dividend / r = 2.05 / 15.2% = $13.49
2) Annual Dividend = 40 x 18% = 7.20, Quarterly dividend = 7.20 / 4 = 1.80
b) Only 1.80 will be paid
c) 1.80 + 1.80 = 3.60 will be paid in cumulative
3) Price, P = D / (r - g) = 1.24 / (13.3% - 7.3%) = $20.67
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Problem 1:...
Preferred dividends Acura Labs Inc. has an outstanding issue of preferred stock with a par value...
Preferred dividends Acura Labs Inc. has an outstanding issue of preferred stock with a par value of $40 and an 8% annual dividend. a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter? b. If the preferred stock is noncumulative and the board of directors has passed the preferred dividend for the last 4 quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid...
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On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on...
On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on its 26,000, $1 par, common shares. The market price of Sandals common stock is $31 on June 30. Record the stock dividend. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the stock dividend. Note: Enter debits before credits. General Journal Debit Credit Transaction June 30 Nathan's...
1. Sterling Garde Corporation has 50,000 shares of $1.60 preferred stock outstanding in addition to its...
1. Sterling Garde Corporation has 50,000 shares of $1.60 preferred stock outstanding in addition to its common stock. The $1.60 designation means that the preferred stockholders receive an annual cash dividend of $1.60 per share. In 2018, Sterling Garde declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: (Click the icon to view the data.) Read the requirements? 1. How much in dividends must Sterling Garde declare each year before the common stockholders receive any...
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Please write the steps to get the answers. P15.7 (LO 3) (Cash Dividend Entries) The books...
Please write the steps to get the answers.
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Please answer the 3 empty boxes. Thank you! Also, show your work on how you got...
Please answer the 3 empty boxes. Thank you! Also, show your
work on how you got the calculations.
Quantitative Problem 11 Hubbard Industries just paid a common dividend, Do, of $1.50. It expects to grow at a constant rate of 3% per year. If investors require a 11% return on equity, what is the current price of Hubbard's common stock? Do not round Intermediate calculations. Round your answer to the nearest cent. per share Zero Growth Stocks: The constant growth...
In 2018, when Noah Corporation was organized, it immediately issued 790 shares of $8 par, 7...
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Answer in this format please thank you!! Problem 13-5A Computing book values and dividend allocations LO...
Answer in this format please thank you!!
Problem 13-5A Computing book values and dividend allocations LO C2, A4 [The following information applies to the questions displayed below.] Raphael Corporation's balance sheet shows the following stockholders' equity section. $ 55,000 Preferred stock-5% cumulative, $ par value, 1,000 shares authorized, issued, and outstanding Common stock-$_ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 140,000 310,000 $ 505,000 Problem 13-5A Part 1 1. What are the par values...
Janeek Enterprises PLEASE answer promptly and show all work Question 9 O out of 0.5 points...
Janeek Enterprises
PLEASE answer promptly and show all
work
Question 9 O out of 0.5 points The shareholders' equity of Janeek Enterprises includes $279,800 of no par common stock and $521,700 of 6% noncumulative preferred stock. The board of directors declared cash dividends of $92,200 in 2016 after paying $29,200 cash dividends in 2015. What is the amount of dividends paid to common shareholders in 2016?
Preferred dividends Acura Labs Inc. has an outstanding issue of preferred stock with a par value of $40 and an 8% annual dividend. a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter? b. If the preferred stock is noncumulative and the board of directors has passed the preferred dividend for the last 4 quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid...
13 of 47 (22 This Test: 50 pts possible Preferred dividends Acura tabs inc has an outstanding issue of preferred stock with a par value of S40 and an 8% annual dividend a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter? sois onuae anbr n the current quarter before dividends are paid to common stockholders? arkers how much must be pandt c. If the preferred stock is cumulative and the...
On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on its 26,000, $1 par, common shares. The market price of Sandals common stock is $31 on June 30. Record the stock dividend. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the stock dividend. Note: Enter debits before credits. General Journal Debit Credit Transaction June 30 Nathan's...
1. Sterling Garde Corporation has 50,000 shares of $1.60 preferred stock outstanding in addition to its common stock. The $1.60 designation means that the preferred stockholders receive an annual cash dividend of $1.60 per share. In 2018, Sterling Garde declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: (Click the icon to view the data.) Read the requirements? 1. How much in dividends must Sterling Garde declare each year before the common stockholders receive any...
Preferred dividends in each case in the following table, : , how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are paid? i Data Table (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Case Type Cumulative Noncumulative Noncumulative Cumulative Cumulative Dividend per Periods of Par value share per period dividends passed $140 $14.70 $80 2.0% $70 $2.45 $50 2.5%...
Please write the steps to get the answers.
P15.7 (LO 3) (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances as of December 31, 2020. Cash 195,000 Preferred Stock (6% cumulative, 300,000 nonparticipating, $50 par) Common Stock (no-par value, 300,000 1,500,000 shares issued) Paid-in Capital in Excess of Par-Preferred 150,000 Stock Treasury Stock (common 2,800 shares at 33,600 cost) Retained Earnings 105,000 The company decided not to pay any dividends in 2020. The board of directors,...
Please answer the 3 empty boxes. Thank you! Also, show your
work on how you got the calculations.
Quantitative Problem 11 Hubbard Industries just paid a common dividend, Do, of $1.50. It expects to grow at a constant rate of 3% per year. If investors require a 11% return on equity, what is the current price of Hubbard's common stock? Do not round Intermediate calculations. Round your answer to the nearest cent. per share Zero Growth Stocks: The constant growth...
Answer in this format please thank you!!
Problem 13-5A Computing book values and dividend allocations LO C2, A4 [The following information applies to the questions displayed below.] Raphael Corporation's balance sheet shows the following stockholders' equity section. $ 55,000 Preferred stock-5% cumulative, $ par value, 1,000 shares authorized, issued, and outstanding Common stock-$_ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity 140,000 310,000 $ 505,000 Problem 13-5A Part 1 1. What are the par values...
Janeek Enterprises
PLEASE answer promptly and show all
work
Question 9 O out of 0.5 points The shareholders' equity of Janeek Enterprises includes $279,800 of no par common stock and $521,700 of 6% noncumulative preferred stock. The board of directors declared cash dividends of $92,200 in 2016 after paying $29,200 cash dividends in 2015. What is the amount of dividends paid to common shareholders in 2016?
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