You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2.
a) What will profits be if sales turn out to be $1.5 million?
b) What will profits be if sales turn out to be $4.5 million?
Assume Coleco pays an annual dividend of 1.53 and has a share price of 37.79. It announces that its annual dividend will increase to 1.75. If its dividend yield stays the same, what should be its new share price?
Anaconda Inc. has a retained earnings balance of $8,250,000. The company reported net income of $1,275,750, sales of $8,560,400 and has 300,000 shares of common stock outstanding. The company announced a dividend of $1.45 per share. Therefore, the company’s dividend payout ratio is:
a. 40 percent
b. 19 percent
c. 45 percent
d. 27 percent
e. 36 percent
Which ratios would you not use to assess the capital gearing of an enterprise?
A) Interest cover ratio
B) Asset turnover
C) Debt-to-equity ratio
D) Long-term debt to assets
E) Debt ratio
Order an Essay Now & Get These Homework Help Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
