Canadian Adventures Has Earnings Per Share of $2

question 100

Multiple Choice

Canadian Adventures has earnings per share of $2.86 and dividends per share of $1.80.The total equity of the firm is $750,000.There are 38,000 shares of stock outstanding.What is the sustainable rate of growth?

• A) 2.14 percent
• B) 3.31 percent
• C) 4.94 percent
• D) 5.37 percent
• E) 6.59 percent

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Definitions:

Nonstock Companies

Companies that do not issue stock as part of their ownership structure; often structured as cooperatives or mutual companies.

Par Preferred Stock

Preferred shares of a corporation with a nominal face value, which typically dictates dividends and liquidation claims.

Par Common Stock

Common stock issued with a nominal or face value assigned per share, often used in legal documents.

Convertible

A type of security, such as a bond or preferred stock, that can be converted into a specified number of shares of common stock.