11. A broker purchases a stock that pays a $2.15 annual dividend at a price...

50.1K

Verified Solution

Question

Finance

11. A broker purchases a stock that pays a $2.15 annual dividend at a price of $20. The broker expects a 10% rate of return. What is the total actual return if the broker sells the stock after one year for $25.
12. A company just paid a $3 dividend per share of stock, which is expected to grow 10% annually. A brokers required return is 15%. What is the highest price the broker should be willing to pay for one share of the company today?
13. In 2016, the ending retained earnings was $2,000,000. In 2017, the forecasted net income is $4,000,000 with a 40% dividend payout ratio. What is the forecasted retained earnings for year 2017?
14. If the projected total assets are $2,000,000 with projected total liabilities of $800,000 and projected owners equity of $600,000. What is the amount of discretionary financing needed?
15. A company is preparing a pro forma balance sheet. The forecast calls for $20 million in projected sales. The projected cash needed 10% of sales, accounts receivable are 20% of sales, and PP&E is 50% of sales. Accounts payable is 15% of sales, and Long-Term debt is $2 million. Total shareholders equity is $4 million. What is the discretionary financing needed?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students