Ch 14 Q7

Please provide the answer for this question along with all the calculations.

Thank You!

7. Using the financial statements given, answer the following: (a) If there were 20 million common shares in issue, what was the dividend per share? (b) Calculate the following ratios: (i) Dividend payout ratio (ii) Dividend cover ratio (e) What is the maximum dividend that Glasgow Co. could have legally paid in 2015? 450 Discussion Questions and Problems (d) What is the maximum dividend that Glasgow Co. could have paid in 2015 without recourse to additional borrowing? (e) If Glasgow Co. wanted to invest $100 million in a plot of agri- cultural land, how could it finance the investment? (1) If Glasgow Co. wanted to invest $800 million in a plot of agri- cultural land, how could the company finance it? As a bank lending officer, would you lend Glasgow Co. $10 million to buy an office building? (h) As a bank lending officer, would you lend Glasgow Co. $500 million to invest in a new product that the company had devel- oped and wanted to put on the market? If yes, under what conditions? 7. Using the financial statements given, answer the following: (a) If there were 20 million common shares in issue, what was the dividend per share? (b) Calculate the following ratios: (i) Dividend payout ratio (ii) Dividend cover ratio (e) What is the maximum dividend that Glasgow Co. could have legally paid in 2015? 450 Discussion Questions and Problems (d) What is the maximum dividend that Glasgow Co. could have paid in 2015 without recourse to additional borrowing? (e) If Glasgow Co. wanted to invest $100 million in a plot of agri- cultural land, how could it finance the investment? (1) If Glasgow Co. wanted to invest $800 million in a plot of agri- cultural land, how could the company finance it? As a bank lending officer, would you lend Glasgow Co. $10 million to buy an office building? (h) As a bank lending officer, would you lend Glasgow Co. $500 million to invest in a new product that the company had devel- oped and wanted to put on the market? If yes, under what conditions