+1-415-670-9189
info@expertsmind.com

# Get Solution

What is effective rate by which dividend has been increased
Course:- Financial Management
Reference No.:- EM13927260

 Tweet

Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

Sanchez Supermarkets, Inc. (50,000 common shares outstanding) currently has annual earnings before interest and taxes of \$1,000,000. Its interest expenses are \$200,000 a year, and it pays \$100,000 in annual dividends to its stockholders. The company's tax rate is 40 percent, and its common stock's current dividend yield is 2.0 percent.

a. Calculate the company's earnings per share.

b. Calculate the company's dividend payout ratio.

c. Calculate the company's current common stock price.

d. If Sanchez declares and pays a 100 percent stock dividend and then pays an annual cash dividend of \$1.10 per share, what is the effective rate by which the dividend has been increased?

Minimize

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
 You deposit \$1,000 in an account. You expect the account to earn 0.75% annual interest for the first six years. Then you expect the account to earn 1.03% annual interest until Assume that on March 16, the cheapest bond to deliver on the June T-bond futures contract is the 14s, callable in about 19 years and maturing in about 24 years.- Determine t Consider an organization with which you are familiar, and identify the internal and external stakeholders. Are there stakeholder groups that are not included that should be? H Jiminy’s Cricket Farm issued a bond with 15 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 95 percent of its par value. Charles just sold 500 shares of stock A for \$15,000. In addition, he just sold 650 shares of stock B for \$6,500. Charles had paid \$20 per share for all his shares of stock A & The gross amount of an invoice with freight charge included is \$500. The freight charge is \$100. The invoice is dated November 29 with terms of 1/10 EOM. Payment is made on Ja On December 31, 2012, Brock & Co. issued \$600,000 of bonds payable at par. The bonds have a 9% stated rate, pay interest on March 31, June 30, September 30, and December 31, a Suppose you deposit \$1,250 at the end of each quarter in an account that will earn interest at an annual rate of 10 percent compounded quarterly. How much will you have at t