Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

wigin Energy has just announced its profits for 2021. It has been a good year, with the firm having earned a 19.9% return on the

image text in transcribed
wigin Energy has just announced its profits for 2021. It has been a good year, with the firm having earned a 19.9% return on the retained profits that it invested in new projects. It tells investors that it will shortly be paying out 28.9% of these earnings to them through a cash dividend of $55.8 per share. Anticipating the investors might be unhappy with such a sharp drop from the 80.5% of its profits that they returned to investors in 2020, the firm explains that this decrease is due to it ctly having significantly more profitable investment opportunities as this time. A combination of lighter government regulation and subsidies for renewable energy market investment have given an unforeseen boost to their sector. Origin Energy believes that this coming year it will be able to increase its profitability even further. A combination of the continued impact of the previously mentioned factors with further economic stimulus from the government will see its return on new investments increase to 23.1%. Complete the following statements using the information above: (a) Origin Energy paid a $ dividend per share to its shareholders in 2020, (Round your answer to the nearest cent) by % compared to the (b) The dividend the investors receive from Origin Energy this year will have shrunken dividend they received in 2020. (Round your answer to the nearest cent) wigin Energy has just announced its profits for 2021. It has been a good year, with the firm having earned a 19.9% return on the retained profits that it invested in new projects. It tells investors that it will shortly be paying out 28.9% of these earnings to them through a cash dividend of $55.8 per share. Anticipating the investors might be unhappy with such a sharp drop from the 80.5% of its profits that they returned to investors in 2020, the firm explains that this decrease is due to it ctly having significantly more profitable investment opportunities as this time. A combination of lighter government regulation and subsidies for renewable energy market investment have given an unforeseen boost to their sector. Origin Energy believes that this coming year it will be able to increase its profitability even further. A combination of the continued impact of the previously mentioned factors with further economic stimulus from the government will see its return on new investments increase to 23.1%. Complete the following statements using the information above: (a) Origin Energy paid a $ dividend per share to its shareholders in 2020, (Round your answer to the nearest cent) by % compared to the (b) The dividend the investors receive from Origin Energy this year will have shrunken dividend they received in 2020. (Round your answer to the nearest cent)

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

Step: 3

blur-text-image

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

Finance And Financial Intermediation

Authors: Harold L. Cole

1st Edition

0190941707, 978-0190941703

More Books

Students also viewed these Finance questions

Question

5. Describe the visual representations, or models, of communication

Answered: 1 week ago