Question: please kindly answer all mcq please. just answer A,B,C or D, thanks in advance sir. Answer questions 4 through 8 from the information provided below:

please kindly answer all mcq please. just answer A,B,C or D, thanks in advance sir.

please kindly answer all mcq please. just answer A,B,C or D, thanks

in advance sir. Answer questions 4 through 8 from the information provided

below: A firm's selected information is as follows: 2020 2021 Sales $14

Answer questions 4 through 8 from the information provided below: A firm's selected information is as follows: 2020 2021 Sales $14 000 Cost of Goods Sold 10 100 Gross Profit $ 3 900 Operating Expenses 1 700 Operating Income 2 200 Interest Expense 300 Earnings before taxes 1 900 Less: Taxes 380 Earnings after taxes $ 1520 Total Assets (beginning-of-the-year) $ 20 000 Equity (beginning of the year) 12 000 Debt (beginning of the year) 5 000 Number of shares 1 000 Earnings Per Share (EPS) $ 1.52 Dividend Per Share (DPS) 20 Shareholders' required rate of return 10.0% $15 200 11 150 $ 4 050 1 800 2 250 300 1950 390 $ 1 560 $23 560 13 520 6 000 1 000 $ 1.56 250 10.00% 4. What is the firm's residual earnings in 2020? A. $1.52 C. 32 B. $1.20 D. - 32 5. What is the firm's residual earnings in 2021? A. $1.56 C. 1150 B. 20.8 D. - $9.3 6. What is the firm's Abnormal Earnings Growth (AEG) in 2021? A. 11.26 C. SO B. $ - 11.20 D. not calculable 7. What is the value of the firm at the beginning of 2020 under the RE model if the RE of 2021 is expected to grow at a constant rate of 4% for an indefinite period? Answer: 8. What is the value of the firm at the beginning of 2020 under the AEG model if the AEG of 2021 is expected to grow at a constant rate of 4% for an indefinite period? Answer: 9. Which of the following statements is true? A. Positive earnings is a sufficient condition to yield positive residual earnings: B. If ROCE >r, residual earnings will be positive. C. If residual earnings grow, abnormal earnings growth (AEG) will be zero or positive. D. A positive AEG means Price-to-Book (P/B) ratio > 1. 10. Which of the following statements is true? A. AEG =Cum-Dividend Earnings - Normal Earnings B. The AEG model prices book values. C. If residual earnings grow at a certain rate, the AEG will also grow at the same rate. D. Cum-Dividend earnings = Earnings + Earnings from prior period earnings

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