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Vaselesa [24]
3 years ago
11

Superior has provided the following information for its recent year of operation: The common stock account balance at the beginn

ing of the year was $20,000 and the year-end balance was $25,000. The additional paid-in capital account balance increased $2,500 during the year. The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000. Net income was $26,000.
How much were Superior's dividend declarations during its recent year of operation?
A. 10,000
B. 42,000
C. 26000
D. The dividend declarations can not be determined given the above information.
Business
1 answer:
Crank3 years ago
5 0

Answer:

A. 10,000

Explanation:

The dividends declared during the company's recent year can be viewed from the perspective of changes in retained earnings since the  end of the year retained earnings are a function of the beginning of the year retained earnings, net income and dividends as captured in the formula below:

closing retained earnings=beginning retained earnings+net income-dividends

closing retained earnings=$91,000.

beginning retained earnings=$75,000

net income=$26,000

dividends=the unknown

$91,000=$75,000+$26,000-dividends

dividends=$75,000+$26,000-$91,000

dividends=$10,000

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Hungry lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock
kati45 [8]

Answer: The number of shares outstanding is approximately 170702.32 shares.

We have :

EPS                       $0.43

Net Income       $73,402

The formula for computing EPS is

EPS = \frac{Net Income}{Number of shares outstanding}

Substituting the values from the question in the formula above we get,

Number of shares outstanding = \frac{73402}{0.43}

Number of shares outstanding = 170702.3256

7 0
3 years ago
Read 2 more answers
1. Interest rates on a 4-year Treasury security are currently 7%, while 6-year Treasury securities yield 7.5%. If the pure expec
Fiesta28 [93]

Answer:

The market believes that 2-year securities will be yielding 4 years from now is 8.51%

Explanation:

The pure expectations theory tries to predict what short-term interest rates will be in the future based on current long-term interest rates.

Given data;

Interest rate on 4-year treasury security = 7%

Interest rate on 6-year treasury security = 7.5%

The pure expectation theory explains  that the 6-year rate is the geometric average of the 4-year rate and the 2-year rate 4 years from now.

The 2-year rate in 4 years is represented by r

We solve;

(1  +  7.5%)⁶ =  (1  +  7%)⁴ ×  (1  +  r)²

(1 + 0.075)⁶  = (1. 0.07)⁴ ×  (1  +  r)²

1.543301526  =  1.31079601  ×  (1  +  r)²

1  +  r  =  1.08507020

r  =   1.08507020 - 1

r = 0.08507020

r = 8.51%

Therefore, the market believes that 2-year securities will be yielding 4 years from now is 8.51%.

6 0
3 years ago
You volunteer to participate in a game in which you are told that you and another participant, whom you will never meet but is p
evablogger [386]
It's the <span>prisoner's dilemma.</span>



Hope this satisfies your query! Have a good one :)
3 0
3 years ago
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 220.00; Variable expense
dalvyx [7]

Answer:

The answer is d. 3911

Explanation:

First, we obtain the contribution margin, wih the formula Selling price per unit minus variable expense per unit. So, the contribution margin per unit is 220 - 97.5 = 122.5.

Next, knowing how much each unit contributes to cover the fixed costs, we can calculate how many units do we need to pay the fixed expenses. This is called "break even point" or BEP. The formula is Fixed Expenses / Contribution margin per unit. So, the BEP is 448,090 / 122.5 = 3,657.88.

With those two things, the final task is to calculate how many units we need, covered the fixed expenses, to achieve the company target profit. The formula is Target profit / Contribution margin per unit. So, the number of units is 31,000 / 122.5 = 253.06.

Finally, we add these two number, to obtain the total units needed to cover the fixed costs and achieve the target profit: 3,657.88 + 253.06 = 3,910.64 = 3,911

7 0
3 years ago
You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on
inysia [295]

Answer:

$258077.04

Explanation:

The cost of the house is $350,000

Apply compound interest formula

A=P(1+r/n)^nt

where

A=amount of loan after the period has elapse=?

P=principal deposit amount=$50,000

r=rate of interest in decimal form=0.07%

t=time taken for the loan to mature

n=1

A=$50,000(1+0.07)^9

A=$50,000*(1.07)^9

A=$91922.96

Remaining balance =$350000-$91922.96=$258077.04

4 0
3 years ago
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