Questions from Financial Management

Q: Drew Financial Associates currently pays a quarterly dividend of 50 cents per

Drew Financial Associates currently pays a quarterly dividend of 50 cents per share. This quarter’s dividend will be paid to stockholders of record on Friday, February 12, 2016. Drew has 200,000 commo...

Q: Winkie Baking has just announced a 100 percent stock dividend. The

Winkie Baking has just announced a 100 percent stock dividend. The annual cash dividend per share was $2.40 before the stock dividend. Winkie intends to pay $1.40 per share on each of the new shares....

Q: What are the primary differences between forward contracts and futures contracts?

What are the primary differences between forward contracts and futures contracts?

Q: Wolverine Corporation plans to pay a $3 dividend per share on

Wolverine Corporation plans to pay a $3 dividend per share on each of its 300,000 shares next year. Wolverine anticipates earnings of $6.25 per share over the year. If the company has a capital budget...

Q: Tulia Dairy pays a $2.50 cash dividend and earns

Tulia Dairy pays a $2.50 cash dividend and earns $5 per share. The cash dividend has recently been increased to $2.65 per share, and a 3 percent stock dividend has been declared. What is the effective...

Q: The Mori Egg Noodle Company has the following equity accounts on its

The Mori Egg Noodle Company has the following equity accounts on its balance sheet: Common stock ($10 par, 300,000 shares)……………….………………….$ 3,000,000 Contributed capital in excess of par…………………………….……...

Q: Champoux Hair Factory Inc. has earnings before interest and taxes of

Champoux Hair Factory Inc. has earnings before interest and taxes of $200,000. Annual interest amounts to $80,000, and annual depreciation is $80,000. Taxes are computed at a 40 percent rate. Existing...

Q: Lenberg Lens Company believes in the dividends-as-a-

Lenberg Lens Company believes in the dividends-as-a-residual philosophy of dividend policy. This year’s earnings are expected to total $10 million. A very conservative company, Lenberg is financed sol...

Q: Phoenix Tool Company and Denver Tool Company have had a very similar

Phoenix Tool Company and Denver Tool Company have had a very similar record of earnings performance over the past eight years. Both firms are in the same industry and, in fact, compete directly with e...

Q: The Emco Steel Company has experienced a slow (3 percent per

The Emco Steel Company has experienced a slow (3 percent per year) but steady increase in earnings per share. The firm has consistently paid out an average of 75 percent of each year’s earnings as div...