Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Dividend Policy Analysis Matheny Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Matheny Inc. operations.
(a) Suggest factors to be considered by the board of directors in establishing a dividend policy.
(b) Compute the rate of return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Matheny Inc.
(c) Comment on the appropriateness of declaring a cash dividend at this time, using the ratios computed in part (b) as a major factor in your analysis.
2011
2010
2009
2008
2007
Sales
$20,000
$16.000
$14,000
$6,000
$4,000
Net Income
2.400
1,400
800
700
250
Average total assets
22,000
19,000
11,500
4,200
3,000
Current assets
8,000
6,000
3.000
1,200
1,000
Working capital
3,600
3,200
500
400
Common shares:
Number of shares outstanding (000)
2,000
20
Average market price
$9
$8
$4
-
Mostert Music Company had the following transactions in March: Based on the information above, prepare a cash basis and an accrual basis income statement.
The Chambers Manufacturing Company recorded overhead costs of $16,468 at an activity level of 5,100 machine hours and $10,017 at 2,400 machine hours. The records also indicated that overhead of $10,078 was incurred at 3,050 machine hours. What is the..
On November 30, 2010, Feiner Company announced its plans to discontinue the operations of Division P (a component of the company) by selling the division.
What is the major source of the change in net assets that occurred in 2007 from the change that occurred in 2008? In your opinion, is this trend likely to continue? Why/why not?
Prepare an acquisition analysis and the consolidation journal entries necessary to prepare consolidated accounts for the year ending 30 June 20x4 for the group comprising Tien Ltd and Chai Ltd.
Jimmy’s Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholder’s equity at the end of the y..
Prepare all the required closing entries for the company at December 31. Calculate the year ending balance in retained earnings.
Prepare a budgeted income statement for the quarter ending March 31, xxxx - 11 and calculate ending balances as of March 31,
Evaluate the net present value of each project assuming Monson Company uses a 12% discount rate.
Consider the following scenario: John buys a house for $135,000 and takes out a five year adjustable rate mortgage with a beginning rate of 5%.
Jordan and her brother, Jason, purchase a hardware store from a local bank which acquired it through foreclosure. Because the bank wants to sell the business, Jordan and Jason can buy it for only $160,000. Jordan will invest $42,000 and own 70% of th..
Bernice purchased land and a building for use in connection with her business.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd