True or False.

company's retained earnings have a financing cost associated with them because retained earnings belong to which of the followin

Masja [62]

Answer:

a. The common stockholders.

Explanation:

A company's retained earnings have a financing cost associated with them because retained earnings belong to the common stockholders.

Retained earnings can be defined as the accumulated profits or net income generated by an organization but are not distributed or given as dividends to the stockholders, rather are reinvested in to the business.

Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.

Retained earnings represents the total stockholders' equity reinvested back into the company.

5 0

3 years ago

2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take

Colt1911 [192]

Answer: At the age of 65 the money will be $90337.5

Explanation: There are 365 days in a year take $5 multiply it by 365 to get the money after one year then multiply it by 10 % to get an interest per year. Add the interest to the amount then multiply by 43 years.

Note 65years-22 years = 43 years

$5×365= $1825

$1825×10%=$182.5

=$182.5+$1825=$2007.5/year

$2007.5×43= $90337.5

8 0

3 years ago

Detroit Corporation sued Chicago Corporation for intentional damage to Detroit's goodwill. Detroit had created its goodwill thro

Grace [21]

Answer:

d. The $1,500,000 is not taxable because Detroit settled the case

Explanation:

The $1,500,000 is not taxable because Detroit settled the case, Compensation received of damaging Goodwill is not taxable.

8 0

3 years ago

The following data pertain to an investment proposal: Required investment $75,000 Annual cash savings $18,000 Projected life of

ehidna [41]

Answer:

Explanation:

Using a financial calculator, input the following using CF function;

Initial Investment ; CF0 = -75,000

Yr1 cashflow ; C01 = 18,000

Yr2 cashflow ; C02 = 18,000

Yr3 cashflow ; C03 = 18,000

Yr4 cashflow ; C04= 18,000

Yr5 cashflow ; C05 = 18,000

Yr6 cashflow ; C06 = 18,000

Yr7 cashflow ; C07 = 18,000

Yr8 cashflow ; C08 = 18,000 +4,000 = 22,000

Required rate of return = 16%

then compute Net present value by keying in NPV, CPT = $4,404.74

5 0

3 years ago

ackson Inc. listed the following data for 2019: Budgeted factory overhead $1,530,000 Budgeted direct labor hours 90,000 Budgeted

Anastaziya [24]

Answer: $36 per machine hour

Explanation:

Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 would be calculated by dividing the budgeted factory overhead by the budgeted machine hours. This will be:

= $1,530,000 / 42,500

= $36 per machine hour

5 0

2 years ago