Digby's balance sheet has $80,975,000 in equity. Further, the company is expecting net income of 4,000,000 next year, and also expecting to pay $5,000,000 in dividends. If there is no new stock issued what will be Digby's book value?
Select: 1
$79,975,000
$44,189,000
$34,189,000
$89,975,000
A firm with a book value of $15.60 share and 100 percent dividend payout is expected to have a return on common equity of 15 percent per year indefinitely in the future. Its cost of equity is 10 percent.
a) Calculate the intrinsic price-to-book ratio
b) Suppose this firm announced that it was reducing its payout to 50 percent of earnings in the future. How would this affect your calculation of the price-to-book ratio?
Computing Depreciation Expense for a Machine. ... In Declining balance method Depreciation is calculated on the beginning balance of book value without considering ...
Computation of gain or loss on disposition of machinery. ... (176000-8000)/10. $16,800.00. Depreciation per month= $1,400.00. Book value = Cost - Depreciation 27600. ...
...Value of Non-Controlling Share $30,000 Step 5: Prepare a Computation and Allocation of the Difference Between Book Value and Implied Value by Purchase Price ...
... This solution helps with questions regarding computing depreciation and recording the ... 5 years depreciation under straight line method: Year Book Value at the ...
... 1. When should goodwill be included in the computation of ROIC? ... goodwill as the difference between the purchase price and the acquired company's book value. ...
