|
Arts and Crafts, Inc., will pay a
dividend of $6 per share in 1 year. It sells at $50 a share and firms in the
same industry provide an expected rate of return of 15%. What must be the
expected growth rate of the company’s dividends? (Do
not round intermediate calculations.)
|
|
Expected growth rate
|
3
 % |
Explanation:
|
$50
|
=
|
$6
|
 |
g
|
=
|
0.15
|
−
|
$6
|
=
|
0.03
|
=
|
3%
|
|
0.15
− g
|
$50
|
Can you please tell me how are we supposed to contact you for homework help?
ReplyDeleteI need help with some accounting homework but am not sure how to contact you....
ReplyDeleteA comparative income statement is given below for Ryder Company:
ReplyDeleteRyder Company
Comparative Income Statement
This Year Last Year
Sales $ 5,000,000 $ 4,000,000
Cost of goods sold 3,160,000 2,400,000
Gross margin
1,840,000
1,600,000
Selling and administrative expenses:
Selling expenses 900,000 700,000
Administrative expenses 680,000 584,000
Total selling and administrative expenses 1,580,000 1,284,000
Net operating income 260,000 316,000
Interest expense 70,000 40,000
Net income before taxes $
190,000
$
276,000
The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut waste out of the organization.
Required:
1.
Express each year's income statement in common-size percentages. (Input all amounts as positive values. Round your answers to 1 decimal place. Omit the "%" sign in your response.)
This Year Last Year
Sales % %
Cost of goods sold % %
Gross margin % %
Selling and administrative expenses:
Selling expenses % %
Administrative expenses % %
Total selling and administrative expenses % %
Net operating income % %
Interest expense % %
Net income before taxes % %