Answer:
addition to retained earnings is $34,304
Explanation:
Revenue = $513,000
- Costs <u>= $406,800</u>
Gross Profit = $106200
- Depreciation expense = $43,800
- Interest paid <u>= $11,200</u>
Profit before tax = $51,200
- Tax 33% = $16,896
Profit after tax = $34,304
*Profit after tax is actually addition to Retained earning the dividend payment is made from the Retained earning account after that.
I would say that if the manager was consulted on the budget then he/she couldn't complain that it was unrealistic and impossible to meet and if they had any problems with it then they should have spoken up when the budget was being formulated.
Answer:
Microsoft was doing good till 1990's because there was no competition at that time and they were the only operation system known, but when internet market was getting other competitors Microsoft's risk increased they couldn't compete with them.
Explanation:
Systematic beta reflects the risk which is present in the market and difficult to avoid.
- Microsoft was doing great when and the reason they got on top was because there was no competitor so they weren't at risk.
- <em>But</em> since the technological industry is enhancing Microsoft didn't adapt to change and continued with their old strategy which led them at this condition as there risk is increasing they are highly volatile to the market.
<span>when there are no taxes the stock price can be expected to drop exactly to the dividend.
so
net stock price=87-1.32
net stock price=85.68
then the total stock worth will be net stock price * no.of .shares
stock value= 85.68*150
stock value= 12,852 $</span>