For each of the companies described here, would you expect it to have a low, medium, or high dividend-payout ratio?  1. A company with a large proportion of inside ownership, all of whom are high-income individuals? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio.   2. A growth company with an abundance of good investment opportunities? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio.   3. A company that has high liquidity and much unused borrowing capacity and is experiencing ordinary growth? A. Low dividend-payout ratio B. Medium or high dividend-payout ratio.

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery ...

A: Capital structure decisions refer to those decisions which are concerned with the sources of funds l...

Q: Describe the services and characteristics that are of prime importance to you in a financial institu...

A: Financial institutions are the institutions in which the operations are all finance related. These i...

Q: Assuming that your Mother wishes to make annual deposits into your younger brother's savings account...

A: Present Value of the gradient “G” 400 for 4 years and present Value of “A” $2000 for 4 years is the ...

Q: Appendix The directors of Mylo Ltd are currently considering two mutually exclusive investment proj...

A: Net present value is the sum of discounted cash flows with the required rate of return. One should g...

Q: Starting in 3 years, you want to be able to withdraw P7,308 every three months for 8 years. You want...

A: Quarterly amount to withdraw (Q) = P 7308 n = 8 years = 32 quarters Interest rate = 5.25% monthly co...

Q: Suppose GHI Bank has a portfolio of 8-year fixed rate mortgages with total principal amount of $50 m...

A: An rate of interest swap is an agreement to exchange a series of money flows supported the differenc...

Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment ...

A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...

Q: 00 LO %24 JE Use the following information for this and the next three questions. Southern Mountain ...

A: Inventory Inventory can be described as a good or material that a company holds for the purpose of r...

Q: (S in thousands) 2020 2021 Income statement information $7,000 420 $ 6,000 160 Net sales Net income ...

A: Profit margin on sales =$468$7100×100=6.6% Return on assets =Net incomeAvrage Total Asset$468$3600×1...

Q: 2. A financial manager must choose between three alternative investments. Each asset is expected to ...

A: Wealth maximization is the concept of maximizing the value of the shares held by the shareholder, to...

Q: A business loan of 800,000 is to be repaid in full after 2 year. What is the amount to be paid if th...

A: Loan = 800,000 N = 2 years Effective rate of interest = 8%    

Q: The simplest form of business ownership is a: O Corporation. O Cooperative. O Partnership. Proprieto...

A: Proprietorship is also known as individual entrepreneurship. In this , enterprise is owned and run b...

Q: The following were gathered for estimating the cost of equity of KKK Corporation: Return on Treasury...

A: Here, Return on Treasury Bond (Rf) is 4% Return on Market (Rm) is 10% Beta is 1.2

Q: What is the interest rate on a loan of $52,000 for 54 days that yields $780.00 interest? Group of an...

A: Loan (L) = $52000 n = 54 days Let r = Interest rate  

Q: What amount is needed to invest today by a man if he wants to receive a quarterly cash out of Php 49...

A: Quarterly payment (P) = Php 49,623 Period = 7  Years Quarterly payments (n) = 7*4 = 28 Interest rate...

Q: What will be the interest rate per interest period if convert to compounding monthly?     1.9967% ...

A: Effective annual rate (EAR) refers to the rate of interest which is an outcomes of compounding inter...

Q: which term is used to describe a feature added by major stock exchanges to restrict program trading ...

A: Program Trading:  When a computer program or algorithm is used to generate trades automatically on a...

Q: Which of the following statements is NOT true? A) A progressive tax system should increase the ince...

A: The progressive tax system is the tax system where the income of the people is taxed according to th...

Q: SOLVE FOR THE RETURN ON EQUITY

A: Return on equity is a measure of return available for the equity holders of a company. It is calcula...

Q: If you

A: Number of years: Number of years is the time period to take the present value of an invested amount ...

Q: A ShanmukhaRao Kosuri Pvt. Ltd. has a target capital structure of 65 percent debt and 35 percent equ...

A: Cost of capital = (Cost of debt x Debt percentage) + (Cost of equity x Equity percentage)

Q: A television set is for sale at ₱ 13,499 in cash or on installment terms,₱ 2,550 each month for the ...

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at tim...

Q: You decided to purchase a new appliance by borrowing $1,500 using Home Credit Product Loan which cha...

A: Loan amount (PV) = $1500 Interest rate = 18% Monthly interest rate (r) = 18%/12 = 1.50% Period = 3 Y...

Q: Corporation. Cooperative. Partnership. Oropriotorchin

A: Introduction : In simple words, the given question relates to the multiple forms of business ownersh...

Q: Explain the essence of the binomial model for calculating the value of call and put options. Provide...

A: The binomial option pricing model is a method for valuing options that was created in 1979 by y John...

Q: a. What was the principal balance of the loan? $0.00 Round to the nearest cent b. What was the total...

A: Principal: It refers to the initial amount of loan or bond that must be paid with interest to the l...

Q: 14. A man made ten annual end-of-year purchases of P1,000 common stock. At the end of 10th year he s...

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...

Q: Bronze, Inc has sales of $58,200, costs of $25,300, depreciation expense of $3,100, and interest exp...

A: Operating Cash Flows  = Earning before interest & tax + Depreciation - Taxes

Q: 3.     The required rate of return, assuming no inflation, is 12%, the sales price of a particular p...

A: Solution:- We know, nominal discount rate is the discount rate after the effect of inflation in the ...

Q: Problem 1 : You are given the following information: The price of a 6% coupon bond maturing in 6 mon...

A: Since you have posted a question with multiple sub-parts , we will solve first three sub-parts for y...

Q: This question has multiple parts. A farmer sows a certain crop. It costs $240,000 to buy the seed, p...

A: Net Present value is calculated using the discount rate (Interest Rate), it is the present value of ...

Q: A lock-out provision Prevents even small payments in excess of the contracted amount.

A: Lockout provision is basically prohibit for any advance payment during a specified period. In simple...

Q: Which of the following statements is false O A positive net working capital is desirable. O A firm's...

A: Working capital is the difference between current assets and current liability. The basic accounting...

Q: XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropri...

A: Solution:- Short term cash surplus means the company has the excess cash for a short term of time an...

Q: Compute for the Effective Interest Rate Payment Period = Quarter 10% Compounded Yearly = 10% Compou...

A: To Find: Effective interest rate payment period= Quaterly

Q: Chelsea FC has $15 million debt outstanding due next year and currently has $8 million cash. Chelsea...

A: The value of payment or receipt to be executed in future at present time is called the Present Value...

Q: emand loan was paid off with payments of $3,000 on April 10th, $2,000 on September 25th and a final ...

A: loans are paid by the installment payment and these are paid by the payment that carry the payment f...

Q: Calculate the length of time that $500 monthly payments pays off a loan of $100,000 at i=.002/month....

A: Monthly payment (P) = $500 Loan amount (PV) = $100,000 Monthly interest rate (r) = 0.002 Number of m...

Q: Mezzanine Debt is generally collateralized by O A first deed of trust O A high rate of interest O A ...

A: Mezzanine debt is a financing instrument which is a hybrid of debt and equity. It has higher risk th...

Q: Compare preventive and breakdown maintenance costs

A: The specifications of maintenance types vary throughout the business, making it difficult to disting...

Q: why is knowledge of the money market important for carrying out value maximizing working capital sho...

A: The money market is important for the organizations and the government to keep a smooth cash flow op...

Q: A forprofit business has a focus on profit and loss and follows GAAP regulations A government entity...

A: GAAP - Generally accepted accounting principles (GAAP), They refer to a common set of accounting pri...

Q: calculate the net present value; Initial capital investment                                        ...

A: Net present value is the sum of all the discounted cash flows during the tenure of the investment. O...

Q: The project returns 50% in present value for each current dollar invested The proiect's costs are le...

A: Profitability index is the ratio of the present value of the benefits to the amount of initial inves...

Q: Compute for the Effective Interest Rate Payment Period = Semi-annual   10% Compounded Yearly = Bla...

A: The modified rate of return for compounding interest into actual terms of time is called the effecti...

Q: 1. The formula being used to get the working capital is - a. Working Capital= Current Assets/Current...

A: Solution 1:- As per Bartleby honor code, if multiple questions are posted, the expert is required on...

Q: 10. Each year a single payment of P5000 is deposited in an account that earns 16% compounded continu...

A: Annual payment (P) = P5000 Interest rate (i) = 16% Number of payments (n) = 5 Mathematics constant  ...

Q: Explain three different features between Islamic and conventional bank?

A: A bank may be a sort of financial organization that's permitted to simply accept deposits and supply...

Q: Mr Lim must pay RM 250 every month for 24 months to settle a loan at 10% compounded monthly. Find ...

A: Monthly payment (P) = RM 250 Number of monthly payments (n) = 24 Interest rate = 10% Monthly interes...

Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...

A: Days in Inventory outstanding is used to determine the conversion of inventory in the cash cycle and...

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.