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arsen [322]
3 years ago
8

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:

Business
1 answer:
lawyer [7]3 years ago
8 0

Answer:

The correct answer is D

Explanation:

Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.

So, the marginal principle of retained earnings would be when it will provide the higher rate of  return than the shareholders who could achieve after paying taxes on the dividends.

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Five years ago you took out a 30-year mortgage with an APR of 6.5% for $200,000. If you were to refinance the mortgage today for
Oksi-84 [34.3K]

Answer:

-$104.79

Explanation:

Current Mortgage Payment:

P/Y = 12,

N = 360,

I/Y = 6.5,

PV = $200,000,

Solve

for PMT = $1,264.14

Current Mortgage Balance:

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N = 300,

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PMT = $1,264.14,

Solve

for PV = $187,221.9

New Mortgage Payment:

P/Y = 12,

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I/Y = 4.25,

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for PMT = $1,159.35

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= $1,159.35- $1,264.14

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