Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the following 2020 financial information: Annual dividends per share paid in 2020 - $3.00 Earnings per share - $2.50 Net Income - $2,500,000 Dividend growth

the following 2020 financial information:

Annual dividends per share paid in 2020 - $3.00

Earnings per share - $2.50

Net Income - $2,500,000

Dividend growth rate for 2021 - 2%

Investor's required rate of return - 10%

which statement is correct?

a. The number of common shares is 750,000

b. The profit margin is 1.75%

c. The PE ratio is 4.5x

d. The dividend yield in 2021 will be 4.5%

e. The internal growth rate is 8.28%

f. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application Of Theory To Policy

Authors: David N Hyman

12th Edition

0357442156, 978-0357442159

More Books

Students also viewed these Finance questions

Question

5. How we can improve our listening skills?

Answered: 1 week ago