Upton Computer's sales for 2019 were $360 million and net income for the year was $18...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Upton Computer's sales for 2019 were $360 million and net income for the year was $18 million, so the firm's profit margin was 5.0%. Upton paid dividends of $9 million to common stockholders, so its payout ratio was 50%. Assume Upton's profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. If sales are projected to increase by $70 million in 2020, what is Upton's projected dividend payment in 2020? $8.48 million $10 million $10.75 million $13.22 million $14.29 million Upton Computer's sales for 2019 were $360 million and net income for the year was $18 million, so the firm's profit margin was 5.0%. Upton paid dividends of $9 million to common stockholders, so its payout ratio was 50%. Assume Upton's profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. If sales are projected to increase by $70 million in 2020, what is Upton's projected dividend payment in 2020? $8.48 million $10 million $10.75 million $13.22 million $14.29 million
Expert Answer:
Related Book For
Basic Business Statistics Concepts and Applications
ISBN: 978-0134684840
14th edition
Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat, David F. Stephan
Posted Date:
Students also viewed these finance questions
-
Do Generation X and Boomers differ in how they use credit cards? A sample of 1,000 Generation X and 1,000 Boomers revealed the following results: a. If a respondent selected is a member of Generation...
-
Do Generation X and Boomers differ in how they use credit cards? A sample of 1,000 Generation X and 1,000 Boomers revealed the following results: If a respondent is selected at random, what is the...
-
Do U.S. GAAP and IFRS differ in how they account for other-than-temporary impairments? Explain.
-
Consider the circuit shown in (Figure 1). Suppose that v 240 V,v 2 110 V, and v 3 450 V Figure 1 of 1 a) Use the mesh-current method to find the magnitude of the total power developed in the circuit...
-
Manually find the future value of an ordinary annuity of $300 paid annually at 5% for three years. Verify your result by using the table method. See Examples 1 and 3.
-
a. State what is meant by the torque of a couple. b. Three strings, A, B and C, are attached to a circular ring, as shown in Figure 4.35. The strings and the ring all lie on a smooth horizontal...
-
Awesome Adventures Travel, Inc., recorded revenues of \($2,400\) earned on account by providing travel service for clients. Requirements 1. How much are the businesss cash and total assets after the...
-
Comparing Cash Flow Streams you have your choice of two investment accounts. Investment A is a 15-year annuity that features end-of-month $1,000 payments and has an interest rate of 9.5 percent...
-
Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Cullumber Medical Comparative...
-
A national bank has developed a predictive model for identifying customers who are more likely to accept a credit card offer, if a customer is predicted to accept the credit card offer, he or she is...
-
Factor each polynomial. Please show any necessary work. 1. P-16 2. 18a-98b 3. P4 - 256 4. K-6k+9 5.X - 27
-
Describe an investment opportunity that includes at least one real option. On what does the value of the option depend?
-
Liquidation preferences and participation are both common features of term sheets. How do these provisions work when there is a liquidation event like a winding up of the company or an acquisition?
-
What is hypothesis-driven entrepreneurship and how does it relate to real options? What are some examples of real options?
-
What are three important differences between real options and financial options?
-
What are the main stages of new venture development? What kinds of things go on during the different stages?
-
Lexington is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Asa comes to Lexington on April 7 and requests a pay advance of $1,000, which Asa will...
-
31. What is the income that can be received over 15 years from $500,000 earning 6% annually? 32. What is the semiannual payment required to retire $50,000 in debt over 5 years at 8% compounded...
-
There has been much publicity about bonuses paid to workers on Wall Street. Just how large are these bonuses? The file Bonuses contains the bonuses paid (in $000) from 2000 to 2016. Source: Data...
-
You want to develop a model to predict the taxes of houses, based on asking price. A sample of 61 single-family houses listed for sale in Silver Spring, Maryland, a suburb of Washington, DC, is...
-
What does the Z score measure?
-
Assume that an account has the following characteristics: Number of items in the account-300 Recorded amount- \(\$ 600,000\) Sample size-100 Required: a. If the sample mean is \(\$ 1,800\) and mean...
-
You desire to estimate the amount of the inventory of your client. Draper. Inc. You satisfied yourself earlier as to the inventory quantities. During the audit of the pricing and extension of the...
-
The following data for a substantive test using sampling are available: Population recorded amount- \(\$ 200,000\) Tolerable misstatement \(\$ 10,000\) Number of items in the population-200 Risk of...
Study smarter with the SolutionInn App