The Vinson Corporation has earnings of $1,106,000 with 370,000
shares outstanding. Its P/E ratio is 12....
The Vinson Corporation has earnings of $1,106,000 with 370,000
shares outstanding. Its P/E ratio is 12. The firm is holding
$410,000 of funds to invest or pay out in dividends. If the funds
are retained, the aftertax return on investment will be 10 percent,
and this will add to present earnings. The 10 percent is the normal
return anticipated for the corporation, and the P/E ratio would
remain unchanged. If the funds are paid out in the form of
dividends,...
EPS, P/E Ratio, and Dividend Ratios
The Stockholders' Equity section of the balance sheet for
Obregon,...
EPS, P/E Ratio, and Dividend Ratios
The Stockholders' Equity section of the balance sheet for
Obregon, Inc. at the end of 2017 appears as follows:
8%, $100 par, cumulative preferred stock, 200,000
shares authorized, 50,000 shares issued and outstanding
$5,000,000
Additional paid-in capital on preferred
2,500,000
Common stock, $5 par, 500,000 shares authorized,
400,000 shares issued and outstanding
2,000,000
Additional paid-in capital on common
18,000,000
Retained earnings
37,500,000
Total stockholders' equity
$65,000,000
Net income for the year was $1,240,000. Dividends...
1. Earnings per Share, Price-Earnings Ratio, Dividend Yield The
following information was taken from the financial...
1. Earnings per Share, Price-Earnings Ratio, Dividend Yield The
following information was taken from the financial statements of
Tolbert Inc. for December 31 of the current fiscal year: Common
stock, $45 par value (no change during the year) $8,100,000
Preferred $5 stock, $100 par (no change during the year) 2,000,000
The net income was $424,000 and the declared dividends on the
common stock were $45,000 for the current year. The market price of
the common stock is $14.40 per share....
Using the P/E ratio approach to valuation, calculate the value
of a share of stock under...
Using the P/E ratio approach to valuation, calculate the value
of a share of stock under the following conditions:
• the investor's required rate of return is 14 percent,
• the expected level of earnings at the end of this year
(E1) is $5,
• the firm follows a policy of retaining 20 percent of its
earnings,
• the return on equity (ROE) is 15 percent, and
• similar shares of stock sell at multiples of 7.272 times
earnings per...
Financial Learning Systems has 2.34 million shares of common
stock outstanding and 126,779 shares of preferred...
Financial Learning Systems has 2.34 million shares of common
stock outstanding and 126,779 shares of preferred stock. ? (The
preferred pays annual cash dividends of ?$5.24 a? share, and the
common pays annual cash dividends of 21 cents a? share.) Last?
year, the company generated net profit? (after taxes) of
$6,869,423.??The? company's balance sheet shows total assets of
?$71 ?million, total liabilities of??$26 ?million, and $5 million
in preferred stock. The? firm's common stock is currently trading
in the market...
Financial Learning Systems has 2.9 million shares of common
stock outstanding and 61,410 shares of preferred...
Financial Learning Systems has 2.9 million shares of common
stock outstanding and 61,410 shares of preferred stock. (The
preferred pays annual cash dividends of $4.46 a share, and the
common pays annual cash dividends of 19 cents a share.) Last
year, the company generated net profit (after taxes) of
$5,809,735. The company's balance sheet shows total assets of $72
million, total liabilities of $26 million, and $5 million in
preferred stock. The firm's common stock is currently trading in
the...
1. Which of the following statements is not true?
Preferred dividends are tax deductible, therefore, preferred...
1. Which of the following statements is not true?
Preferred dividends are tax deductible, therefore, preferred
stock is similar to debt
Preferred stockholders receive dividends at a pre-specified
rate.
Dividends in arrears and the current period’s preferred dividend
must be paid before common shareholders can receive a dividend if
the preferred stock is cumulative.
Preferred stock is unlike debt because preferred stockholders
receive dividends in a given year only if they are declared.
2. Toledo Corporation reacquired 2,500 shares of...