All American National Company earned $240,000 last year. The board of directors decided to pay out one-half of the firm's earnings to the stockholders. Before the board's decision, the firm's retained earnings were $740,000. Which of the following statements is true?a) the firm should be more profitable
b) the firms retained earnings too high
c) each shareholder will receiver more than they did last year
d) the value of the firms retained earnings is now $860,000
e) the value of the firms retained earnings is now $620,000
Solved
Show answers
More tips
- F Family and Home What Kind of Wedding to have After 11 Years of Marriage?...
- C Computers and Internet How to Top Up Your Skype Account Without Losing Money?...
- H Health and Medicine How does childbirth happen: everything future mothers need to know...
- H Health and Medicine What Are the Best Vitamins? A Scientific View on Vitamin Supplements...
- A Auto and Moto How to Deregister a Car in Moscow?...
- A Auto and Moto What Is the Cost of Customs Clearance for a Car in Russia?...
- A Auto and Moto How to choose the right drive for your BMW...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
- L Leisure and Entertainment Mysteries of the Name Vyacheslav Dobrynin...
- H Health and Medicine What makes Graves’ disease dangerous?...
Answers on questions: Business
- B Business I need your Help it s worth 70 points Your job is to write TWO laws for each of the following areas of law: Corporate Law Tax Law Intellectual Property Law Consumer...
- E Engineering The theoretical failure strength of high-purity and fully-dense aluminum oxide (Al2O3, alumina) can be up to 4 GPa ! In other words, a pristine alumina sample is...
- B Business To develop a cost allocation rate for overhead, Normal Costing uses: A. Actual costs and estimated volumes of the allocation base B. Estimated costs and actual...
- M Mathematics The sports bar owner runs a regression to test whether there is a relationship between Red Sox away games and daily revenue. Which of the following statements about...
- H History The revivalism of the Second Great Awakening Select one: a. was largely limited to white Americans. b. pacified opponents of slavery. c. encouraged racial unrest....
- P Physics The same mass, with a new string, is whirled in a vertical circle of the same radius about a fixed point. Find the magnitude of the tension when the mass is at...
- B Business A product is composed of four parts. In order for the product to function properly in a given situation, each of the parts must function. Two of the parts have...
- M Mathematics The reading speed of sixth-grade students is approximately normal, with a mean speed of 125 words per minute and a standard deviation of 24 words per minute. (a)...
- B Business A customer service firm receives an average of three calls per hour on its toll-free number. For any given hour, find the probability that it will receive at least...
- E Engineering A potential difference of 7.00 V is maintained across a 70.0-Ω resistor for a period of 80.0 s. What total charge passes by a point in one of the wires connected...
Ответ:
d) the value of the firms retained earnings is now $860,000
Explanation:
If All American National Company earned $240,000 last year, and the board of directors decided to pay out one-half of the firm's earnings to the stockholders.
That implies that dividends of $120,000 will be paid out (50% x $240,000) while the balance $120,000 will be retained in the company
Hence, if before the board's decision, the firm's retained earnings were $740,000. Then thereafter, the figure will include the $120,000 that will be retained from profits after dividend payout.
$740,000 + $120,000 = $860,000
Ответ:
Savings, taxes, and imports are "leaked" out of the main flow
Explanation: