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nevsk [136]
3 years ago
8

The Broom Maker currently has annual sales of $387,000 and is operating at 88 percent of capacity. The profit margin of 5.5 perc

ent and the dividend payout ratio of 30 percent are projected to remain constant. What is the projected addition to retained earnings for next year based on a sales growth rate of 4.8 percent?
Business
1 answer:
densk [106]3 years ago
8 0

Answer: $15,614.68

Explanation:

Sales are projected to grow by 4.8% the next year.

= 387,000 * ( 1 + 4.8%)

= $405,576

The Projected addition to Retained Earnings = Expected Sales * Profit Margin * Retention ratio ( amount that is not paid as Dividend)

= 405,576 * 0.055 * ( 1 - 0.3)

= $15,614.68

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The nurse is assessing a patient's functional ability. which activities most closely match the definition of functional ability?
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3 years ago
The Evanec Company's next expected dividend, D1, is $3.03; its growth rate is 5%; and its common stock now sells for $34.00. New
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Answer:

(a) 14%

(b) 15%

(c) 15.48%

Explanation:

cost of retained earnings:

= ($3.03 ÷ $34) + 0.05

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= 14%

Therefore, the Evanec's cost of retained earnings is 14%

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Therefore, the Evanec's percentage flotation cost is 15%.

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= ($3.03 ÷ $28.90) + 0.05

= 0.1048 + 0.05

= 15.48%

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8 0
3 years ago
Bob is 46 and made $45,000 in wages in 2017. he divorced in 2014 and has not remarried. he pays all the cost of keeping up his h
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8 0
3 years ago
Read 2 more answers
By shutting​ down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou
wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period  are paid at a later period. Thus option B is incorrect.

.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost.  Hence option C is incorrect.

.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its   sunk cost. Hence option D is incorrect.

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Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0
3 years ago
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