Solved: Find return on equity if dividend payout ratio is given, Finance Basics

+44 141 628 6080
[email protected]

Find return on equity if dividend payout ratio is given

Assume Conservative Corporation is 100% equity financed. Calculate the return on equity given the following information:

1. Earnings before taxes = $2,000

2. Sales = $5,000

3. Dividend payout ratio = 60%

4. Total asset turnover = 2.0

5. Applicable tax rate = 50%

Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return on equity if dividend payout ratio is given

Reference No:- TGS0552536

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Accounts receivable outstanding

If Boyd Corporation has sales of $2 million per year (all credit) and days sales outstanding of 35 days, what is its average amount of accounts receivable outstanding (assume a 360 day year)?

Q : Calculate the market price per share of wam

Given the following information, calculate the market price per share of WAM, Inc.

Q : Methods to evaluate the effectiveness

Using 500-1,000 words, discuss methods to evaluate the effectiveness of your proposed solution and variables to be assessed when evaluating project outcomes.

Q : Annual ocf for the project

Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be $1,350,000 per year, and fixed costs are $1,250,000 per year. If the tax rate is 38 percent, what is the annual OCF for the project?

Q : Find return on equity if dividend payout ratio is given

Assume Conservative Corporation is 100% equity financed. Calculate the return on equity given the following information.

Q : Find the year interest rate that is expected for year two

If the nominal rate of interest on 1-year bonds is 5 percent and that on comparable risk 2-year bonds is 7 percent, what is the 1-year interest rate that is expected for year two?

Q : Account work

Account work, The ANZ Bank (Share code: ANZ.AX) expects to pay a dividend of $0.91 today and dividends are expected to grow at 6% forever. The required return on ANZ shares is 9%. Based on this info

Q : Account work

Account work, The ANZ Bank (Share code: ANZ.AX) expects to pay a dividend of $0.91 today and dividends are expected to grow at 6% forever. The required return on ANZ shares is 9%. Based on this info

Q : What is the real risk-free rate of return

The current interest rate premiums for relatively safe corporate firms is as follows: inflation premium = 2.1%; default risk premium = 1.4%. Based on this data, what is the real risk-free rate of return?

1953754

Questions
Asked

3,689

Active Tutors

1427719

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return on equity if dividend payout ratio is given

Reference No:- TGS0552536

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Accounts receivable outstanding

Q : Calculate the market price per share of wam

Q : Methods to evaluate the effectiveness

Q : Annual ocf for the project

Q : Find return on equity if dividend payout ratio is given

Q : Find the year interest rate that is expected for year two

Q : Account work

Q : Account work

Q : What is the real risk-free rate of return

What apply to reprocessing equipment in a medical office

Is it advisable to arrive early for your speaking engagement

What is the best way to prevent accumulation of deposits

What lego efforts illustrate

How did gender dynamics impact halsteads leadership

Ipaws training and demonstration environment certificate

Learn more about required business licenses and permits

Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return on equity if dividend payout ratio is given

Reference No:- TGS0552536

Recent Questions Asked Finance Basics

Q : Accounts receivable outstanding

Q : Calculate the market price per share of wam

Q : Methods to evaluate the effectiveness

Q : Annual ocf for the project

Q : Find return on equity if dividend payout ratio is given

Q : Find the year interest rate that is expected for year two

Q : Account work

Q : Account work

Q : What is the real risk-free rate of return

Asked Questions