Goldfish limited generated a net income of $20 million in 2021. The company practices a 20% divined

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Question:

Goldfish limited generated a net income of $20 million in 2021. The company practices a 20% divined policy. If the company has 4 million shares outstanding and the current market price of its stock is $20, what is the dividend yield for an investor holding Goldfish's stock?

a 27.41

b 27.24

c cant be calculated

d 27.52

Which one of the following is an example of feedback mechanisms in financial planning?

a. Decrease in spontaneous assets due to decreased projection of sales.

b. Increase in spontaneous assets due to increased projection of sales.

c. Readjustment of interest due to raising new capital to support AFN.

d. Increase in total assets to support sales growth.

Which one of the following statements is INCORRECT?

a. AFN will increase in a firm that has a higher capital intensity ratio. b. Cash receipt from a customer in 45 days instead of 65 days would decrease AFN.

c. A higher sale forecast will increase AFN

d. A lower dividend forecast will decrease AFN.

Orio limited is about to pay a cash dividend of $5 per share. The current share price is $35. John owns 1000 shares of Tesla, and he prefers a $7 cash dividend. What will be John's homemade dividend strategy?

a. None of the options

b. Buy more shares to receive expected cash as a dividend

c. Sell 85.71 shares to generate the required cash.

d. Sell shares to generate $1200 cash.