Q1 Distinguish between zero growth, constant growth and super normal growth in dividend? Q2 The following information
Question:
Q1 Distinguish between zero growth, constant growth and super normal growth in dividend?
Q2 The following information is taken from the ABC Department Store:
Available information (dollar amounts in thousands);
Net sales....................................................................................................................................$10,000
Net income.................................................................................................................................?
Current liabilities..........................................................................................................................2,000
Selling expenses...........................................................................................................................1,000
Long term Liabilities....................................................................................................................1,600
Total assets ...................................................................................................................................6800
Capital ........................................................................................................................................?
Gross profit .................................................................................................................................?
Cost of goods sold ...................................................................................................................... 7000
Current assets ........................................................................................................................... 4000
Income tax expense .................................................................................................................... 220
Operating income .....................................................................................................................?
General and administrative expenses ...................................................................................980
Plant & Equipment ..................................................................................................................2600
Other assets ................................................................................................................................?
Required:(04 Marks)
Using the captions given above, prepare for Westport department store a condensed;
i)Multiple step income statement for the year ended Dec.31, 2014
ii)Balance sheet at Dec. 31, 2014
Q3) When do we accept project on the basis of NPV ? (Brief comment required
Expert Answer:
