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Author Question: Smith Motors Inc. manufactures, distributes, and services automotive parts and engines worldwide. ... (Read 52 times)

s.tung

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

lkoler

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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.
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s.tung

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Reply 2 on: Apr 25, 2021
:D TYSM

ktidd

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Reply 3 on: Yesterday
Excellent

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