1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
taurus [48]
3 years ago
7

Fauver Industries plans to have a capital budget of $650,000. It wants to maintain a target capital structure of 40% debt and 60

% equity, and it also wants to pay a dividend of $225,000. If the company follows the residual dividend policy, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance?
Business
1 answer:
Anon25 [30]3 years ago
8 0

Answer:

$ 615,000

Explanation:

Data provided :

Capital budget = $ 650,000

Debt ratio = 40%

Equity ratio = 60%

thus,

The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000

= $ 390,000

Dividend to be paid = $ 225,000

Therefore,

the net income must be earned = $ 390,000 + $ 225,000

or

The net income must be earned = $ 615,000

You might be interested in
________ is the process of distributing indirect costs to products. cost allocation job cost recording cost pooling cost tracing
tatuchka [14]
I believe the answer is cost allocation.
3 0
3 years ago
Read 2 more answers
Function of business​
makvit [3.9K]
Business functions are the activities carried out by an enterprise, they can be divided into core functions and support functions.
6 0
3 years ago
Agricultural output is affected by the weather. Excessively high temperatures and a lack of rainfall are detrimental too crop yi
mariarad [96]

Answer: The answer is provided below

Explanation:

a. When the quantity supplied of a particular crop reduces, it will affect the farmer's revenue but this can still be beneficial to the farmer provided these conditions prevails:

• If demand for the crop rises more than its fall in supply, this will lead to a rise in the and price of the crop. Hence, there will also be an increase in the revenue of the farmer and the farmer will try to adjust output and sell at higher prices. Therefore, the excess demand can off set a fall in the supply.

b. We know that the supply of a crop is limited. For example, let's assume that the crop is rice. Now the situation is that people are demanding more beans maybe as a result of festive season. Therefore, everyone will want to purchase rice which will lead to an increase in the price of rice due to excess demand.

The farmer will try as much as possible to maximise profit and will therefore sell the rice at higher price to those that wants to buy. Therefore, it's clear that the farmer can still benefit, even if his supply is limited, but the demand must be greater than its decline in supply.

6 0
3 years ago
Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 2
Lerok [7]

Answer:

$3,544

Explanation:

The maximum immediate expenses amount of $5000 phases out for dollar if more than $50,000 of start-up cost are incurred. Thus, the immediate expensing is  $3,000

   ($5000 - ($52,000 - $50,000))

∴ ($5000 - ($2000) = $3000

The amortization is $544

($49,000/180) × 2 months

= $544

The total amount she may deduct = $3000 + $544 = $3544.

3 0
4 years ago
What are the two related, but distinct processes involved in approach-oriented emotion-focused coping??
Alekssandra [29.7K]

Answer:

Emotional Processing and Emotional Expression

Explanation:

In order to respond to emotional situations, two approaches are involved in approach-oriented emotion-focused coping:

<em>i) Emotional processing: </em>reflects how individuals process stress related events and move past them. In the event of re-occurrence of the events, the individuals will not be as disrupted as when the instance first occurred.

<em>ii) Emotional expression: </em>entails communicating and sharing emotions expressly i.e. whether verbally or non-verbally. Expressive writing on emotional disclosure e.g by use of journals, is known to help individuals to overcome previous depressive symptoms.

3 0
4 years ago
Other questions:
  • The economy has grown by 4% per year over the past 30 years. During the same period the labor force has grown by 1% per year and
    15·1 answer
  • Hofstede isolated four dimensions that he claimed characterized the cultures of different countries. Briefly describe each of hi
    6·1 answer
  • Comparison of the minimum wage and the median wage can be used to estimate the extent to which unemployment results from minimum
    8·1 answer
  • A depositor places $750 in cash in a commercial bank, and the reserve ratio is 33 1/3%; the bank sends the $750 to the Federal R
    8·1 answer
  • entrepreneurs are usually self-motivated and self-confident and they love a challenge.would you describe yourself this way?brain
    7·2 answers
  • Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas
    15·1 answer
  • Watson, Inc. applies overhead cost based on direct labor hours. In completing the 200 units in job #120, the company incurred $1
    12·1 answer
  • Desert Company purchased land to be used as a factory site for $1,250,000. Desert paid $120,000 to tear down two buildings on th
    7·1 answer
  • Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two j
    15·1 answer
  • The cost of land would not include: Multiple Choice Purchase price. Cost of parking lot lighting. Costs of removing existing str
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!