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NEW QUESTION: 1
A financial analyst with Smith, Kleen, & Beetchnutty is examining shares of Clay Industries for possible investment. Assume the following information:
EPS: $4.19
ROE: 11.25%
Growth rate of dividends: 6.75%
Discount rate: 11.50%
Tax Rate 35%
Using this information, what is the dividend payout ratio for Clay Industries? Further, what is the annual dividend?
A. 40.00%, $2.51
B. 60.00%, $1.68
C. 40.00%, $1.68
D. 35.87%, $1.50
E. 60.00%, $2.51
F. The answer cannot be determined from the information provided.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To determine the dividend payout ratio, the equation used to determine the growth rate of dividends must be manipulated. This equation is originally structured as follows:
{g = ROE (1 - Dividend Payout Ratio)}
In order to determine the Dividend Payout Ratio, the equation must be rearranged to the following: {(1 - Dividend Payout Ratio) = Growth Rate of Dividends / ROE}.
Imputing the given information into this equation will yield:
{(1 - Dividend Payout Ratio) = 0.0675/0.1125)} = 0.60
Finally, subtracting this answer from 1 will yield the answer of 40%. We must subtract the first answer from one because the first answer represents the retention rate, i.e. the percentage of earnings that is retained and reinvested at the firm's ROE, and not the Dividend Payout Ratio. The retention rate and the payout ratio will always combine to equal positive one. In order to determine the annual dividend, take the Dividend Payout Ratio, which was found to be 40%, and multiply this figure by the Earnings Per Share calculation, which is given as $4.19. This will yield an annual dividend of $1.676. As you can see, neither the discount rate nor the tax rate is factored into the equation

NEW QUESTION: 2
An administrator decides to factory reset a Cisco TelePresence System EX90 after log analysis failed to provide the reason for an intermittent one-way audio issue. What can the Administrator expect after the reset is performed?
A. The call logs are preserved.
B. The release keys and option keys are deleted.
C. The release keys and option keys are preserved.
D. The system needs to be manually powered up after the factory reset.
Answer: D

NEW QUESTION: 3
When you design a switched network using VTPv2, how many VLANs can be used to carry user traffic?
A. 0
B. 1
C. 2
D. 3
E. 4
F. 5
Answer: D