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ExtremeBDS [4]
1 year ago
15

Wax music expects sales of $437,500 next year. the profit margin is 4.8 percent, and the firm has a 30 percent dividend payout r

atio. what is the projected increase in retained earnings
Business
1 answer:
zimovet [89]1 year ago
3 0

$16,231 is the Projected Increase in Retained Earnings.

<h3>Explanation</h3>

get here first Expected Profit that is express as

expected Profit = Sales × Profit Margin   .......................1

expected Profit = 437500 × 5.3%

expected Profit = $23187.50

and Dividends is here as

Dividends = Expected Profit × Dividend Payout Ratio   .................2

Dividends = 23187.50  × 30%

Dividends = $6956.25

Projected Increase in Retained Earnings will be

Projected Increase in Retained Earnings = expected Profit - Dividends   ........3

Projected Increase in Retained Earnings  = $23187.50 - $6956.25

Projected Increase in Retained Earnings = $16231.25

There are options missing in the question which is given below-

a. $16,231

b. $17,500

c. $18,300

d. $20,600

e. $21,000

Thus, the correct option is a. $16231

For more details about the question, click here:

brainly.com/question/14275701

#SPJ1

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Answer: Option (B) is correct.

Explanation:

Given that,

Reserve ratio = 25%

Fed reserve bank sells (securities) to public = $120 million

When a central bank sells the government securities to the public then as a result money supply in an economy decreases. This is an instrument of monetary policy known as " Open market Operations".

The supply of money is directly decreases by $120 million.

and

Money creating potential of banks = Amount of securities × (\frac{1}{rr} - 1)

                                                          = 120 × (\frac{1}{0.25} - 1)

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Hence, a decrease in money supply could eventually reach a maximum of $360 million.

5 0
3 years ago
The more precisely defined the target market is, the _____ the numbers are to estimate.
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3 years ago
Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 8 percent annual rate of interest and ma
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Data provided in the question

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Answer:

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