This is false. Hope this was helpful for you!
Answer: B
Explanation:
I THINK DONT BE MAD IF ITS NOT
Answer:
Austin Grocers
1. Projected 2017 Net Income
= $102 million
2. Expected Growth Rate in Dividends
= 6.25% (2/32 x 100)
Explanation:
a) Income statement (in millions of dollars):
2016 2017
$'millions $'millions
Sales $700 $840
Operating costs
including depreciation 500 630
EBIT $200 $210
Interest 40 40
EBT $160 $170
Taxes (40%) 64 68
Net income $96 $102
Dividends $32 $34
Addition to
retained earnings $64 $68
b) Sales for 2017 = $840 million ($700 x 1.2)
c) Operating costs for 2017 = $630 million ($840 x75%)
d) Taxes for 2017 = $68million ($170 x 40%)
e) Dividend payout ratio = Dividend/Net Income = 33.33%
f) Growth Rate in Dividends = Dividend Increase/Previous year's dividend x 100 = 6.25% (2/32 x 100)
Answer: Expenses or losses that are tax deductible before they are recognized in financial income.
Explanation:
Future taxable amounts arise as a result of a difference between the way an asset or liability is recorded due to the company's financial accounting principles and the way it should be recorded due to taxation principles of the government.
When this happens you will find that some things are not taxed as they should be, but rather as the company records them to be. These differences are only temporary though and correct themselves as time goes on.
An example of such are expenses of losses. Some expenses for instance may be taxable immediately but are instead only taxed in the business over the term of the expense.
Answer:
$3,596,800
Explanation:
The computation of net proceeds to the company is shown below:-
Net proceeds = Number of shares of stock × Offer price × (1 - Underwriter spread percent) - Administrative cost
= 110,000 × $39 × (1- 0.08) - $350,000
= 110,000 × $39 × 0.92 - $350,000
= $3,946,800 - $350,000
= $3,596,800
So, for determining the net proceeds we simply applied the above formula.
