Saturday 17 November 2012

Arts and Crafts, Inc., will pay a dividend of $6 per share in 1 year. It sells at $50 a share and firms in


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
correct %  

Explanation:
$50
=
$6
formula17.mml
g
=
0.15
$6
=
0.03
=
3%
0.15 − g
$50

3 comments:

  1. Can you please tell me how are we supposed to contact you for homework help?

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  2. I need help with some accounting homework but am not sure how to contact you....

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  3. A comparative income statement is given below for Ryder Company:

    Ryder 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 % %

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