Answer:
The answer is B. $210,000
Explanation:
Retained Earnings is the part of profit that is not spent. It is put back into the business after the dividend must have been paid from profit for the year.
Ending retained earnings = beginning Retained Earnings plus net income minus dividend
Beginning Retained Earnings is $150,000
Net income is $95,000
Dividend is $35,000
Therefore amount of Retained Earnings at December 31, 2019 is
$150,000+$95,000-$35,000
=$210,000
Answer: 7.80%
Explanation:
At the end of 2016, Josh received a dividend of $1.37 and at the end of 2020, he received one of $1.85.
You can calculate the growth rate with the formula:
Dividend Growth Rate = (Dividend received at end of 2020/Dividend received at end of 2016) ^ (1/n) - 1
2016 to 2020 is 4 years.
Dividend growth rate = (1.85 / 1.37)¹/⁴ - 1
= 0.07798518
= 7.80%
Answer and Explanation:
The computation is shown below:
a. Current PE ratio is
For Pacific energy company
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
For U.S Bluechips
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
b. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $117,000) ÷ 0.13) ÷ ($967,000)
= 8.62 times
c. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $217,000) ÷ 0.13) ÷ ($967,000)
= 9.42 times
Answer:
Fixed-charge coverage ratio
Explanation:
The fixed-charge coverage ratio can be regarded as a rato that gives the measurements of the ability of a firm have to cover all her fixed charges. These fixed charges could be expense as well as debt payments and interest. It displays the wellness that earnings of a company has to cover its fixed expenses. This ratio is considered by bank before they lend money to a business. It should be noted that Fixed-charge coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes.
