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Finding Divdends Payed Out?
I am trying to figure out dividends.
My setup looks like (23,000)
Payout 13,860
Dividends ??
TO find the NPV I need to add how much he would get payed in dividends. -23,000+13860+Dividends=NPV
I am not sure how to find out how much he would get paid. I think I use the amortization table somehow along with the info provided.
2 Answers
- JKRBLv 78 years agoFavorite Answer
To find the NPV you calulate the present value of all cash payments, including the $20,000 collected at the end of three years. Then subtract the amount of the initial investment ($22,000)
0.82 x 960 shares = $787.20 dividends per year
The factor for PV of an annuity at 13% for 3 years is 2.362
787.20 x 2.362 = $1,859 PV of dividend payments
The factor for PV of a single amount at 13% for three years is 0.693
0.693 x 20,000 = $13,860 PV of sales price at the end of 3 years
1,859 + 13,860 - 22,000 = ($6,281)
Since the NPV is a negative amount, the minimum return of 13% was not met.
Source(s): Accounting Fan - Anonymous8 years ago
I'd try to answer your question but I have no idea what you are talking about. Can you be a little more specific?
