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Art [367]
3 years ago
13

Explain one advantage of using retained profit as a source of finance. ​

Business
1 answer:
Neporo4naja [7]3 years ago
7 0
Retained profits have several major advantages: They are cheap (though not free) – effectively the "cost of capital" of retained profits is the opportunity cost for shareholders of leaving profits in the business (i.e. the return they could have obtained elsewhere)
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(a) which are higher, federal income taxes or state and local income taxes? (b) how much are total income taxes per capita?
victus00 [196]
What.......................
6 0
3 years ago
Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2017. An additional 200,000 shares are issued on Apri
Artist 52 [7]

Answer:

3. 5,110,000 and 5,170,000

Explanation:

Number of shares to be used in computing basic earnings per share

= 4800000*12/12 + 200000*9/12 + 4800004/12

= 4800000 + 150000 + 160000

= 5,110,000

Number of shares to be used in computing dilute earnings per share

= 4800000*12/12 + 200000*9/12 + 4800004/12 + (6000000/1000)*40*3/12

= 4800000 + 150000 + 160000 + 60000

= 5,170,000

Therefore, The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2018 is 5,110,000 and 5,170,000.

5 0
3 years ago
The Pinetop Corporation issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2014. All remaining shares
lidiya [134]

Answer:

$12,000 and $6,000

Explanation:

For computing the dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate  × number of years

= 1,000 shares × $100 × 6%  × 2 years

= $12,000

Out of $18,000, the $12,000 will be paid to preferred stockholders and the remaining $6,000 will be paid to common stockholders

5 0
3 years ago
A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to b
Galina-37 [17]

Answer:

The correct answer is $7,500

Explanation:

So, the hiring cost would be:

Hiring quater × hiring cost

= 300 × $20

= $6,000

Firing Cost would be:

Firing cost = 100 × $5

= $500

= 200 × $5

= $1,000

Therefore, the total hiring and firing cost = $6,000 + $500 + $1,000

= $7,500

7 0
3 years ago
"if i didn't have class tonight, i would save the $4 campus parking fee and spend four hours at work where i earn $10 per hour."
bixtya [17]
Opportunity Cost = It is the cost that is to be sacrificed for achieving something else.  
Given: - 
Campus parking fess (class) = $4 
Income earned through working for 4 hours in place of attending class = $40 ($10/hr) 
 Solution: -  
Opportunity cost of attending class = $4 + $40 = $44.
3 0
3 years ago
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