Answer:
(a) $546,300
(b) $12.88
Explanation:
(a) Earnings available to common stockholders:
= Dividend + Retained Earnings
= 33,300 + 513,000
= $546,300
Earnings available to common stockholders means the amount available to distribute as dividend.
But the company need not pay full earnings as dividend. They may left some portion as retained earnings.
(b) Earnings per share:
= Earnings available to common stockholders ÷ no. of shares of common stock
= $546,300 ÷ 42,400
= $12.88
Answer:
The accounting process of ensuring accuracy and completeness includes Journalizing transactions timely using ledgers and journals, closing entries, create a trial balance, make adjusting entries, create adjusting trial balance and prepare the four basic financial statements (balance sheet, income statement, changes in net assets/equity and cash flows). Note, adjusting entries are not necessary but reversals are a must in this process. This statement is:________.
A. True
Answer:
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
Explanation:
WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt
16% = 45%* Cost of Equity + 55%*(1-40%)*9%
16%-55%*(1-40%)*9% = 45%*Cost of Equity
Cost of Equity = 28.9556%
Current price of Stock = D1/(Cost of Equity - Growth)
25 = 4/(28.9556%-Growth)
Growth = 28.9556%-4/25 = 12.96%
ROE = Net income/Equity = 1.4/(45%*9)
Growth rate = (1- Payout ratio)*ROE
12.96% = (1-Payout ratio)* 1.4/(45%*9)
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
A petty cash fund is used for small payments in order to avoid the time and cost of writing checks for small amounts.
<h3>What is petty cash?</h3>
A petty cash fund is a small amount of cash, used to pay for minor expenses, such as office supplies or employee reimbursements.
It is the pet a actual ledger book, rather than a computer record.
Hence, a petty cash fund is used for small payments in order to avoid the time and cost of writing checks for small amounts.
Learn more about petty cash here : brainly.com/question/6893535
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