Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000
Answer:
Option "D" is the correct answer to the following statement.
Explanation:
Brand participation strategy is a commitment provided by companies for a brand. This is brand recognition with its engagement and express marketing. Social media has helped to increase the willingness of customers to engage with products with a new standard for brands and to build new connections between brands and customers.
Answer:
10.23%
Explanation:
Calculation for What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant
First step is to calculate the Net income
.15 = Net income/ 375,000
Net income=.15($375,000)
Net income= $56,250
Now let calculate profit margin using this formula
Profit margin = Net Income/Sales
Let plug in the formula
Profit margin= $56,250/$550,000
Profit margin= 0.1023*100
Profit margin=10.23%
Therefore the profit margin that the firm would need in order to achieve the 15% ROE, holding everything else constant is 10.23%
Answer:
opportunity cost = 30,000
Explanation:
The opportunity cost is the return in the alternative investment:
250,000 x 12% = 30,000 opportunity cost
The economic profit would be the lease less the opportunity cost
35,000 - 30,000 = 5,000 economic profit
<u>Note: If there was two or more alternatives, </u>we should pick the investment with the highest yield.
