In the percent-of-sales method, an increase in dividends
Emily, please don't post your question under somebody elses question. It may be confusing for those who are willing to answer.
(x+6)(x-2)
= x*x -2*x + 6*x + 6*(-2)
= x^2 - 2x + 6x - 12
= x^2 + 4x - 12
look at this page
http://www.the-mathroom.ca/freebs/alg2/alg2.htm
In order to calculate the impact of an increase in dividends using the percent-of-sales method, you would need certain financial information from a company's financial statements. Here's how you can go about it:
1. Gather the necessary financial statements: Obtain the company's income statement (also known as the statement of operations or statement of earnings) and the statement of retained earnings. These statements can typically be found in a company's annual report or financial filings.
2. Identify the relevant figures:
- Dividends: Find the amount of dividends paid to shareholders. This information can usually be found in the statement of retained earnings or the footnotes to the financial statements.
- Sales: Locate the net sales or revenue figure from the income statement.
3. Calculate the current dividend payout ratio: Divide the dividends by the net sales. This will give you the percentage of sales that are being paid out as dividends.
4. Determine the desired dividend payout ratio: Decide on the new dividend payout ratio you wish to achieve. This could be a specific percentage of sales that you want to distribute as dividends.
5. Calculate the increase in dividends needed: Multiply the net sales by the desired dividend payout ratio. This will give you the amount of dividends that need to be distributed in order to achieve the desired ratio.
It's important to note that the percent-of-sales method is just one of many approaches to determining dividend policy. It assumes that dividends are set as a fixed percentage of sales, but in reality, dividend decisions are influenced by numerous factors, including profitability, cash flow, growth prospects, and shareholder preferences.