Blog

Gnomes R Us just paid a dividend of $1.75 per share. The company has a dividend payout ratio of 40 percent. If the PE ratio is 15.4 times, what is the stock price?

You want to have $24,000 saved 3 years from today in order to make a down payment on a house. To fund this, you will make deposits each week from your paycheck into an account that will earn 4.78 percent compounded weekly. How much must you deposit each week?

Your bank pays 1.2 percent compounded daily on its savings accounts. If you deposit $7,500 today, how much will you have in your account 15 years from now?

Cain’s has a debt-equity ratio of .94. Return on assets is 8.5 percent, and total equity is $520,000. What is the net income?

Navarrete, Incorporated, has net income of $62,300, a tax rate of 21 percent, and a net profit margin of 6.7 percent. Total assets are $1,100,500 and current assets are $328,200. How many dollars of sales are being generated from every dollar of net fixed assets?

Your great aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,500 on the first day of each year, starting immediately and continuing for 20 years. What is the value of this inheritance today if the applicable discount rate is 4.75 percent?

You just paid $465,000 for a policy that will pay you and your heirs $19,100 per year forever with the first payment in one year. What rate of return are you earning on this policy?

At the beginning of the year, Vendors, Incorporated, had owners’ equity of $51,410. During the year, net income was $7,550 and the company paid dividends of $5,010. The company also repurchased $9,510 in equity. What was the owners’ equity account at the end of the year?

Tanveer preferred stock has a dividend yield of 5.2 percent. The stock is currently priced at $43.40 per share. What is the amount of the annual dividend?

You just signed a consulting contract that will pay you $27,000, $31,000, and $44,000 at the end of the next three years, respectively. What is the present value of this contract given a discount rate of 12.7 percent?