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Black_prince [1.1K]
3 years ago
12

A company has retained earnings of $94,000 as of December 31, 2014. The Pro-forma income statement projects net income of $22,00

0 for 2015. The company expects to declare their annual dividend on March 15, 2015 of $0.70 per share and has a total of 100,000 shares outstanding. What will the projected retained earnings account be as of December 31, 2015?
Business
1 answer:
GREYUIT [131]3 years ago
5 0

Answer:

$46,000.

Explanation:

To know the retained earnings at the end of 2015, we first need to calculate how much dividend the company will pay to its shareholders then add up the net income in 2015 to the remaining of retained earning at the end of 2014 (after paying 2014's dividend at Mar 2015)  to get retained earnings at the end of 2015.

Total dividend in on Mar 2015 = 0.7 x 100,000 = 70,000

Retained Earning at the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.

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Answer:

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Download docx
3 0
3 years ago
Lake stevens marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30.
Leni [432]

$500,000

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3 years ago
You own a coal mining company and are considering opening a new mine. The mine will cost $120 million to open. If this money is
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Answer: B. There are two IRRs so you cannot use the IRR as a criterion for accepting the opportunity.

Explanation:

The Internal Rate of Return can be useful in capital budgeting to enable a company know if an investment will be profitable. It is defined as the discount rate that causes the Net Present Value(NPV) to be zero. If the IRR is greater than the required return then the project should be accepted as it will have a profitable NPV.

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10. You have just deposited $1000 in an unusual bank account that pays interest biannually (once every 2 years). If the 2-year i
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Answer:

FV= $1,259.71

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