What is the firms dividends per share

Assignment Help Financial Management
Reference no: EM131185841

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2010 Cash and securities $2,040 Accounts receivable 11,730 Inventories 16,320 Total current assets $30,090 Net plant and equipment $20,910 Total assets $51,000 Liabilities and Equity Accounts payable $9,690 Notes payable 7,140 Accruals 5,610 Total current liabilities $22,440 Long-term bonds $15,045 Total debt $37,485 Common stock $2,295 Retained earnings 11,220 Total common equity $13,515 Total liabilities and equity $51,000 Income Statement (Millions of $) 2010 Net sales $66,300 Operating costs except depreciation 61,991 Depreciation 1,160 Earnings bef interest and taxes (EBIT) $3,149 Less interest 1,387 Earnings before taxes (EBT) $1,763 Taxes 617 Net income $1,146 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $401.01 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $27.50 What is the firm's dividends per share? a. $0.93 b. $0.91 c. $0.74 d. $0.95 e. $0.80

Reference no: EM131185841

Questions Cloud

Create unique hypothetical weighted average cost of capital : Create a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.
What is the potential of the sphere''s surface : What is the potential of the sphere's surface relative to infinity?
Specific macroeconomic variables that are associated : Identify specific macroeconomic variables that are associated empirically with an increase in the identified varieties of risk, and which may indicate an increase or decrease in systematic and systemic risk specifically.
Discuss strategies for converting their old erp system : You are preparing to meet with your end users to discuss possible strategies for converting their old ERP system to a new one. Propose two (2) or three (3) alternative strategies, and explore related examples of situations for which each approach ..
What is the firms dividends per share : The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. W..
Discuss domestic and global economic conditions : On the 4th of October 2016, the Reserve Bank of Australia (RBA) board will meet to discuss domestic and global economic conditions and release its monetary policy statement, having decided upon the appropriate level of the cash rate.
What is the temperature of the cold reservoir : If it is a reversible heat engine and the hot reservoir is at 750K, what is the temperature of the cold reservoir?
What is the opportunity cost of choice : Marissa is buying vegetables. She can choose between carrots ,lettuce ,and green beans. She doesn't like green beans , and after some thought, she chooses carrots. What is the opportunity cost of this choice?
Economic knowledge and analytical skills : In no more than 250 words, please (1) describe how you feel this course has helped you to improve your economic knowledge and analytical skills, and (2) assess the course objectives you still do not understand and suggest how to improve the course..

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the feature of a corporate bond

What is the feature of a corporate bond that protects the purchaser from moral hazard on the part of the borrower?

  Money spent on the market research for this new offering

Loveland, inc. is a furniture store that is considering adding appliances to its offerings. Which of the following should be considered incremental cash flows of this project? Money spent on the market research for this new offering?

  Dividends are expected to grow at constant rate

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.35 per share on its stock. The dividends are expected to grow at a constant rate of 3 percent per year indefinitely. Investors require a return of 10 percent on the company's stock. What ..

  Find the breakeven cash inflow for each project

Break even cash inflows and risk: Blair gasses and Chemicals is a supplier of highly purified gasses to semiconductor manufacturers. Blair is considering one of two plant designs. Blair will be the exclusive supplier for the subsequent 5 years. Find ..

  Interest in semi annual payments

Bills bonds pays 8% yearly interest in semi annual payments for 10 years. The current yield on similar bonds is 11%. To determine the market value of this bond, you must: a. Find the interest factors for 10 periods at 7%, b. Find the interest factor ..

  Foreseeable future-revenues-costs and expenses are expected

Vandalay Industries is trying to choose between two alternative (mutually exclusive) machines. Whichever machine is selected will be utilized for the foreseeable future (in addition, for the foreseeable future, all revenues, costs and expenses are ex..

  The bond is callable after nine years with the call price

You own a bond with the following features: face value of $1000, coupon rate of 6% (semiannual compounding), and 15 years to maturity. The bond has a current price of $1,200. The bond is callable after nine years with the call price of $1100. What is..

  What is fairways cost of equity capital

Fairway Golf Corporation has a beta of 1.2. If the three-month Treasury bills currently yield 2.9 percent and the market risk premium is estimated to be 5.2 percent, what is Fairway’s cost of equity capital?

  Required in order to meet the minimum profit goal

Variable Cost per unit is $175, the sales price would be set at twice the VC/unit and fixed costs are $500,000. The target operating income (EBIT) is $350,000. What sales volume would be required in order to meet the minimum profit goal? (Hint: use b..

  Whats the amount of this home equity loan

A person purchased a house 20 years ago for $270,000 by paying 20% down and signing a 30-year mortgage at 9.45% compounded monthly. The current appraised value of the house is $390,000. If a bank will loan this person 95% of the equity in the house, ..

  Require a net working capital investment

The machinery required for a three year project costs $20,000, belongs in a 15% CCA class, and will require a net working capital investment of $5,000 up-front. The project generates after-tax operating income of $11,500.

  Dividend is expected to grow

Mitts Cosmetics Co.'s stock price is $50.30, and it recently paid a $2.25 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 13%. At what constant rate is the stock expected to g..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd