This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Smith Motors Inc. manufactures, distributes, and services automotive parts and engines worldwide. ... (Read 61 times)

s.tung

  • Hero Member
  • *****
  • Posts: 577
on: Apr 25, 2021
Smith Motors Inc. manufactures, distributes, and services automotive parts and engines worldwide. Smiths' income statement for the year just ending is shown below. Assume that today is the first day of Year 2 and that Smith's common shares are trading at a price of $68. In its most recent Management Discussion and Analysis (MD&A) Smith's management forecast earnings-per-share of $6 for Year 2. If Smith maintains its Year 1 payout ratio, then what will the dividend (per share) be in Year 2?

Smith Motors Inc.
Income Statement
Year 1 ($000,000s)
Revenue$20,995
COGS15,624
SG&A2,466
Dep. Exp.247
EBIT2,658
Int. Exp.55
Pre-Tax Income2,603
Income Tax898
Net Income1,705
​​
Shares Outstanding (millions)205
Total Common Dividends$300.5

◦ $0.77
◦ $1.06
◦ $1.44
◦ $1.86
◦ $2.06
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by s.tung on Apr 25, 2021

lkoler

  • Sr. Member
  • ****
  • Posts: 358
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


s.tung

  • Member
  • Posts: 577
Reply 2 on: Apr 25, 2021
Excellent

samiel-sayed

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Sun-tracking behaviour of the arctic plant, Dryas integrifolia, heats the reproductive parts of its Sun-tracking behaviour of the arctic plant, Dryas integrifolia, heats the reproductive parts of its
Parts of the Hand Used in Palpation; Dorsal Surface Parts of the Hand Used in Palpation; Dorsal Surface
Superior and ¬inferior parts Superior and ¬inferior parts
Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the
Categories of E&M Codes Used for Medical Office Services Categories of E&M Codes Used for Medical Office Services
The Basic Parts of a Neuron The Basic Parts of a Neuron
Video: Wound Repair Animation

For a complete list of videos, visit our video library