Question 8 of 10

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by?

sergij07 [2.7K]

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by <u>selling common stock</u>. Long-term funding can be defined as any financial tool with maturity going beyond one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

<h3>What is a retained earnings?</h3>

Retained earnings are the total of profit an establishment has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.

Therefore, the correct answer is as given above

learn more about retained earnings: brainly.com/question/25631040

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8 0

2 years ago

13) In the following expression, Total: [Rate] * [Hours], "Total" is a(n) ________.

Leno4ka [110]

Answer:

B. Group By operator

Explanation:

Hope this helps and have a nice day :)

3 0

3 years ago

Read 2 more answers

You want to have $5 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is

motikmotik

Answer: $18,128.27

Explanation:

Real interest rate = [( 1 + Nominal rate ) / ( 1 + inflation rate)] - 1

= [(1 + 13%) / ( 1 + 4.4%) ] - 1

= 8.2375478927203065134%

This is dealing with the future value of an annuity where $5,000,000 is that future value.

Future Value of an annuity = Amount * {[((1 + r )^n) - 1] / r}

5,000,000 = Amount * {[((1 + 8.2375478927203065134%% )^ 40) - 1] / 8.2375478927203065134%}

5,000,000 = Amount * 275.81229325572622843153903061969

Amount = 5,000,000/275.81229325572622843153903061969

= $18,128.27

7 0

3 years ago

Smith Company gives the following information on the financial statements: Net Income $50,000 Preferred Dividends 8,000 Average

ch4aika [34]

Answer: The rate of return on common stockholder’s equity is 23%.

Explanation:

Given that,

Net Income = $50,000

Preferred Dividends = 8,000

Average Common Stockholder’s Equity = 180,000

Average number of Common Shares Outstanding = 250,000 shares

Market Price = $2 per share

Therefore,

Return on equity = $\frac{Net\ income - Preferred\ Dividends}{stockholder\ equity}$

= $\frac{50000 - 8000}{180000}$

= 23%

5 0

3 years ago

Oriole Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $890,082. The purchase agreemen

Semmy [17]

Answer:

Annual rate = 8%
Semiannual rate = 4%

Explanation:

The present value of the amount that is to be paid periodically:

= Fair value - Down payment

= 890,082 - 216,000

= $674,082

This is a semi annual payment so the variables need to be converted as such:

Period = 5 years * 2 = 10 semi annual periods

This payment is constant so it is an annuity.

Present value of annuity = Annuity * Present value interest factor, 10 periods, x percent

674,082 = 83,108 * Present value interest factor, 10 periods, x percent

Present value interest factor, 10 periods, x percent = 674,082 / 83,108

= 8.1109

If checked in the PVIFA Table, 8.1109 at 10 periods corresponds with 4%.

The annual interest rate is therefore:

= 4% * 2

= 8%

5 0

3 years ago