Question

1. -what is the conclusion to make if sales per share ofa company fluctuates over years?...

1. -what is the conclusion to make if sales per share ofa company fluctuates over years?
   -what is the conclusion to make if divedent per share ratio is reducing over the years?

Homework Answers

Answer #1

1. -what is the conclusion to make if sales per share of a company fluctuates over years?

If the number of shares is constant over the years of comparison, then it means that the total sales is fluctuating,

If the number of shares has been changing, then the fluctuation in total sales should be considered to assess the variability in sales.

-what is the conclusion to make if dividend per share ratio is reducing over the years?

If the number of shares is the same over the years of comparison, it would mean decreasing dividends. This in turn, might be due to decreasing net income available to the common shareholders or decreasing payout ratio over the years.

However, if the number of shares varies over the years of comparison, then the payout ratio should be calculated to find out if there is decreasing trend in dividends paid.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Company ABC has been paying regular dividend per share of $4 for over 10 years It...
Company ABC has been paying regular dividend per share of $4 for over 10 years It is paying all profits out as dividends and is not expected to grow It has 100,000 share outstanding and the share price is $80 Now the company instead changes to use its profit to repurchase shares 1. What is the investor’s annual return in the current situation 2. Calculate would be the number of shares that it would repurchase and the expected share price...
Earnings per share (EPS) over the last 12 months=$2.50 Earnings per share (EPS) over the next...
Earnings per share (EPS) over the last 12 months=$2.50 Earnings per share (EPS) over the next 12 months=$4.00 Current stock price=$45 Number of common shares outstanding=20,000,000 Restricted stock = 1,000,000 Annual dividend per share=$1.50 Expected annual growth rate in earnings over the next 5 years=5% Shares short=1,000,000 Average trading volume=10,000,000 shares 13. What is the market capitalization for YTB? (a) $600m (b) $700m (c) $800m (d) $900m 14. Based on your answer in question 13, YTB is a (a) mid-cap...
Four years ago, Bling Diamond, Inc., paid a dividend of $2.55 per share. The company paid...
Four years ago, Bling Diamond, Inc., paid a dividend of $2.55 per share. The company paid a dividend of $2.97 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 5 percent per year. What will the company’s cash dividend be in seven years?
Mario's is going to pay $1, $2.65, and $4 a share over the next 3 years,...
Mario's is going to pay $1, $2.65, and $4 a share over the next 3 years, respectively. After that, the company plans to pay annual dividends of $1.65 per share indefinitely. If your required return is 14 percent, how much are you willing to pay for one share today?
Your company must either purchase or make 100,000 units per year over the next 5 years....
Your company must either purchase or make 100,000 units per year over the next 5 years. To make the products yourselves, the project requires an $11 Million investment at n=0, and it requires $1.4 Million per year in operating expenses. In addition, a $2 Million dollar one-time machinery overhaul must be performed at the end of year 3. Assume the machinery has a salvage value of $1 Million at the end of year 5. Finally, assume that raw materials and...
A company is expecting its sales to decline and has announced that it will be reducing...
A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 7.25% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $3.10 per share. What is this stock worth if you require an 11.25% rate of return?
A company is expecting its sales to decline and has announced that it will be reducing...
A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 4.50% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $2.00 per share. What is this stock worth if you require a 8.50% rate of return?
A company is expecting its sales to decline and has announced that it will be reducing...
A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 7.25% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $3.10 per share. What is this stock worth if you require a 11.25% rate of return?
The current price of Parador Industries stock is $66 per share. Current sales per share are...
The current price of Parador Industries stock is $66 per share. Current sales per share are $22.10, the sales growth rate is 4.5 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. a. Calculate the sales per share one-year ahead. (Round your answer to 2 decimal places.) b. Calculate the P/S ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A firms most recent annual dividend was $1.50 per share. Over the next two years, the...
A firms most recent annual dividend was $1.50 per share. Over the next two years, the dividend is expected to grow at 12% per year, and then slow to a constant rate of 7% thereafter. If your required rate of return is 10% what is the value of the stock? $78.06 $58.55 $86.28 $54.59 None of the above The Company has 100 million shares outstanding, paid an annual dividend of $0.25 per share to its common stockholders, and has a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT