Question: ch06 (2) - Re File Home Insert Draw Formulas Data Review View Read Only - You can't save changes to this file Chapter 6, Question
ch06 (2) - Re File Home Insert Draw Formulas Data Review View Read Only - You can't save changes to this file Chapter 6, Question 3 Moonbeam Coffee House 4 Net Income Total Number of Common 5 Shares Outstanding 6 Market Price per Share 7 Dividends per Share $1,200,000 $750,000 $26.60 $0.80 10 Earnings per Share 11 Price per Earnings 12 Dividend Payout Ratio 13 Dividend Yield Ratio 14 15a. Based upon the dividend payout ratio only, what would you expect this company's 16 view to be regarding reinvesting earnings back into the business versus paying them out 17 in stockholder dividends? 18 Answer: 19 21 b. Would you advise Tina to buy this stock? What additional information might you seek 22 in order to help her make a good decision? Explain your answer. 23 24 2 Answer Q 1 04 Bonus Q 8
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