What is the dividend they predict to pay out

Assignment Help Financial Management
Reference no: EM131456814

Consider the following simplified financial statements for the Equity Inc.:

Balance Sheet:

Assets $9,500 Debt $4,500

Equity $5,000

Total $9,500 Total $9,500

Income Statement:   

Sales $20,000

Costs $14,400

Net Income $5,600

Equity Inc. is expecting a sales increase of 8 percent and it anticipates that every item on the balance sheet will increase by 8 percent as well. What is the dividend they predict to pay out? Assume no income taxes.

Reference no: EM131456814

Questions Cloud

How is porter five models is used to plan strategy : How is Porter' five models is used to plan strategy?
Using before-tax costs for all components : The WACC is calculated using before-tax costs for all components. The after-tax cost of debt usually exceeds the after-tax cost of equity.
Each year after retirement at each retirement age : If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age?
Compute the firms operating profit margin : Last year, the Allen Corporation had sales of $12.3 million with a cost of goods sold of $3,750,000. Compute the firm’s operating profit margin.
What is the dividend they predict to pay out : Consider the following simplified financial statements for the Equity Inc.: What is the dividend they predict to pay out?
Interest deduction for tax purposes in first year of loan : what will be the interest deduction for tax purposes in the first year of the loan?
What is the equivalent value of this series at beginning : Consider a series of $141 end-of-period CFs spanning 2013-2027. What is the equivalent value of this series at the beginning 2013?
Deduction during the entire duration of her education : Cindy attended State University during 2011-2015. She lived at home and was claimed by her parents as a deduction during the entire duration of her education.
Firm is planning next years capital budget and projects : The firm is planning next year's capital budget and projects its net income at $75,000,000 and its payout ratio is 40 percent.

Reviews

Write a Review

Financial Management Questions & Answers

  Social security with holdings in its payroll register

CycloCorp is calculating the total withholding deposit for all its employees at the end of its pay period. CycloCorp has $3,455.00 of federal withholdings for its employees. It also has a total of $231.54 of Medicare with holdings and $988.72 in Soci..

  Maximum allowable discounted payback period

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. Discounted payback period years Should the project be accepted or rejected? Rej..

  Biotech sunglasses-what is variable cost per unit

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $10.00 per unit, and the variable labor cost is $5.50 per unit. a. What is the variable cost per unit? Suppose NSI incurs fixed costs of $500,000 during a year in..

  Addition to labor savings and quality improvements

The management of East Side, Inc. is preparing its capital budget for 2015. East side has two divisions. One runs a restaurant (the Restaurant Division). The other brews beer (the Brewery Division). Should the company invest in the labor saving equip..

  Value of the shareholders equity account for this firm

Bear Tracks, Inc., has current assets of $2,250, net fixed assets of $10,100, current liabilities of $1,390, and long-term debt of $4,060. What is the value of the shareholders’ equity account for this firm?

  Could the irs impose a negligence penalty on mr jy

Is Mr. JY liable for payment of the $8,900 tax deficiency plus interest? Could the IRS impose a negligence penalty on Mr. JY? Could Mr. DE be penalized because of the error made in preparing Mr. JY's income tax return? Would your answer to the preced..

  Value of savings account

At the end of 2011, the value of my savings account was $20,000. Over the next three years, the rates of return on the account were as shown below. How much was in the account at the end of the third year, 2014?

  What is yield on seven-year treasury note

The real risk-free rate is 2.85%. Inflation is expected to be 2.05% this year, 3.65% next year, and 3.25% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Trea..

  What is expected total return and what is dividend yield

Consider Ford stock (F) with a current price of $20 per share and a standard deviation of returns of 15%. An investor expects to sell Ford stock in one year at $21 per share and expects the firm to pay a dividend of $1 per share at the end of the yea..

  Gross profit and ending inventory

The Bradley Corporation produces a product with the following costs as of July 1, 2014: Material $ 4 per unit Labor 4 per unit Overhead 2 per unit Beginning inventory at these costs on July 1 was 4,250 units. What is the value of ending inventory?

  Easton could make in order to avoid liability

Source One Associates, Inc., is based in Poughquag, New York. Peter Easton, Source One’s president, is responsible for its daily operations. Between 1995 and 1997, Source One received requests from persons in Massachusetts seeking financial informati..

  Stock market provided the higher real rate of return

The Costaguanan stock market provided a rate of return of 95%. The inflation rate in Costaguana during the year was 80%. In the United States, in con-trast, the stock market return was only 12%, but the inflation rate was only 2%. Which country’s sto..

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