Badtimes Co's latest forecast financial data for the current year is as follows: Last year 12,000...
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Badtimes Co's latest forecast financial data for the current year is as follows: Last year 12,000 3,000 2,700 6,300 $m Profits before interest and tax Interest Forecast 6,000 3,000 900 Tax Profits after interest and tax Preference dividends Dividends (assuming the same % of earnings is paid out) Required Compare the % change in PBIT to the % change in dividends and explain the difference. 200 2,000 2,100 200 623 Badtimes Co's latest forecast financial data for the current year is as follows: Last year 12,000 3,000 2,700 6,300 $m Profits before interest and tax Interest Forecast 6,000 3,000 900 Tax Profits after interest and tax Preference dividends Dividends (assuming the same % of earnings is paid out) Required Compare the % change in PBIT to the % change in dividends and explain the difference. 200 2,000 2,100 200 623
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Answer rating: 100% (QA)
P BIT is expected to increase by 100 while dividends are only expected to increase by 33 The differe... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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