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professor190 [17]
3 years ago
8

Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $25.521 million Cash of $2.010 millio

n Total Assets of $41.309 million Total Common Stock of $1.270 million. What were the Digby Corporation's retained earnings
Business
1 answer:
Reptile [31]3 years ago
7 0

Answer: $14.518 million

Explanation:

Based on he information given, we have to calculate the owner's equity first which will be:

= Assets - Liabilities

= $41.309 million - $25.521 million

= $15.788 million

Since Owners equity is the addition of the total common stock and the retained earnings. Therefore, retained earnings will be:

= Owners equity - Total common stock

= $15.788 million - $1.270 million

= $14.518 million

The retained earning is $14.518 million

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Answer;

No of spaghetti he purchase y=100

Explanation:

Given,

Price of iced tea is=\$ 2 per bottle

Price of spaghetti is =\$ 8 per serving

Let no iced tea is =x

Let no of spaghetti ==y

x+y=200  

multiply by 2

2x+2y=400               (i)

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2x+8y-2x-2y=1000-400

6y=600

y=100

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x=200-100

x=100

No of spaghetti is 100

No of iced tea is 100

           

3 0
3 years ago
The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year when the an
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Answer:

Market rate of return is 7.79%

Explanation:

The market rate of return on the stock can be computed using the market price of the stock , which is given below:

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share market price is $28.16

D1 is the expected dividend next year which is given by $1.35

expected market return is the unknown

dividend growth rate is 3%

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let y be the expected market return

$28.16=$1.35/y-3%

by cross multiplication the equation becomes

$28.16*(y-3%)=$1.35

y-3%=$1.35/$28.16

y=($1.35/$28.16)+3%

y=7.79%

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