Correct option:
d. Scott can regard himself as a part-owner of ABC Limited.
Explanation:
Owning shares implies that we are also a company owner. When we buy shares, we are buying a share of the company's assets and it profits and thus, we become a part - owner of the company.
Correct option:
d. Scott can regard himself as a part-owner of ABC Limited.
Explanation:
Owning shares implies that we are also a company owner. When we buy shares, we are buying a share of the company's assets and it profits and thus, we become a part - owner of the company.
Scott owns some shares in ABC Limited. As a shareholder Select one: a. Scott can be...
can any one help me with these easy practice question? the faster the better as I have an exam tomorrow and really wanna practice these concepts! thanks Cash dividends are declared out of preferred shares. common shares. c retained earnings. dividends payable. $3 cumulative preferred shares means that each preferred shareholder is eligible to receive C no dividend. c an annual dividend of $3 per share. a quarterly dividend of $3 per share. c a monthly dividend of $3 per...
8. Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The company has announced that it will pay a dividend of $5 per share in one year and then a liquidating dividend of $50 per share in two years. The required return on ABC stock is 10%. (21 marks) a. What is the current share price of your stock? (1 mark) b. What will be the company’s share price in one year? (1 mark) c. Mr. Toriop wishes...
Problem #1 Homemade Leverage Mr. Green owns 250 shares of ABC Company. There are 12,500 shares of stock outstanding. The stock sells for $42 per share. The company is financed by 70% equity and 30% debt at 5.5% interest. Mr. Green can borrow at the same interest rate as the company. The company expects to earn $66,675 annually. Ignore taxes. Mr. Green is not pleased with the level of debt carried by the company, so he is planning to sell...
During the past years, ABG had limited its investment plans due to high cost of capital. Recently, however, the cost of capital seems to have fallen, and the management of the company is seriously considering the implementation of two major investment plans. Assume that you are the assistant of the ABG's financial director, who has assigned you to calculate the company's cost of capital. Your financial manager has provided the following information: 1. The corporate tax rate is 20%. 2....
During the past years, ABG had limited its investment plans due to high cost of capital. Recently, however, the cost of capital seems to have fallen, and the management of the company is seriously considering the implementation of two major investment plans. Assume that you are the assistant of the ABG's financial director, who has assigned you to calculate the company's cost of capital. Your financial manager has provided the following information: 1. The corporate tax rate is 20%. 2....
#1 Van Buren, Inc., currently pays $2.24 per share in dividends on its common stock. Dividends are expected to grow at 7.00 % per year forever. If you require a 13.00 % rate of return (i.e., the discount rate) on this investment, what value would you place on a share of Van Buren common stock? Assume that the current dividend was just paid. Answer format: Currency: Round to 2 decimal places # 2 Bad Investment Incorporated has "promised" investors to...
Question 2 1 pts Which of the following descriptions concerning shareholders and stakeholders is INCORRECT? A shareholder can be an individual, company, or institution that owns at least one share of a company and therefore has a financial interest in its profitability. Stakeholders can be owners and shareholders, employees of the company, bondholders who own company issued debt customers who may rely on the company to provide a particular good or service, suppliers and vendors who may rely on the...
Compensation sessionABC International: Solving the Rural BarrierSource: Thunderbird School of Global Management, A unit of the Arizona State University Knowledge Enterprise. 2015. This case was prepared by Erin Bell under the guidance and supervision of Dr. Amanda Bullough, and revised and updated by Drew Helm for the purpose of classroom discussion only, and not to indicate either effective or ineffective managementSiham sat with her family and childhood friend, Leila, in their rural village of Qabatiya, Palestine. Leila had recently returned from...
Continued on from case study 8. According to the Investor Presentation, what is one strategy that Michael Hill has planned for its cash flow? 1. Michael Hill International Limited (hereafter known as “Michael Hill”) ordinary shares are listed on the Australian Securities Exchange (ASX). Michael Hill owns and operates approximately 300 retail jewellery stores across Australia, New Zealand and Canada. According to the ASX announcement made by Michael Hill on Date: 27/08/18 and Headline: Investor Presentation, part of Michael Hill’s...
1) Emeco Holdings Limited (Emeco) is a company listed on the Australian Securities Exchange (ASX). Emeco is investigating a proposal to replace one of their outdated earth-moving excavators with a new CAT 390F excavator. The new excavator has a much larger carrying capacity, offers improved fuel economy and has lower maintenance costs compared to the existing excavator. However, the cost of a brand new CAT 390F is $2.8 million and Emeco’s accountant is concerned that the net profit of the...