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svetoff [14.1K]
3 years ago
5

Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share on January 2, 2014. She

rman Corporation had 100,000 shares of common stock outstanding during 2015, paid cash dividends of $90,000 during 2015, and reported net income of $300,000 for 2015. Ziegler Corporation should report revenue from investment for 2015 in the amount of:___________
a. $22,500.
b. $52,500.
c. $75,000.
d. $82,500.
Business
1 answer:
FrozenT [24]3 years ago
5 0

Answer:

c. $75,000

Explanation:

The computation of revenue from investment for 2015 is shown below:-

Investment in Sherman = Purchased shares ÷ Common stock shares

= 25,000 ÷ 100,000

= 25%

Revenue from investment = Net income × Investment in Sherman

= $300,000 × 25%

= $75,000

Therefore for computing the revenue from investment we simply multiplied the net income with investment in Sherman.

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Answer:

MIRR = 27.85%

Explanation:

Below is the calculations:

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Generate cash flow each year = $104750

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Now find the MIRR = (871802.825 / 199550)^(1/6)-1

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3 years ago
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Marta_Voda [28]
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