taylorbug6161
taylorbug6161
16.11.2020 • 
Business

Northern Technology Inc. (NTI) closed the end of 2009 with a balance of $1,500,000 in retained eam ings as shown below. Because of a poor economy, NTI cut its total annual dividends to $30,000, he
which it expects earnings and dividends to increase. For the next eight years, it expects the follow
Castell Divident Policy
results
Net Income
(loss)
(5000)
Dividends
(5000)
Retained
Earnings
(5000)
1,500
Yaar
2009
2010
2011
2012
2013
2014
2015
2016
2017
(500)
(200)
400
350
700
810
950
1.150
30
30
45
45
125
150
225
?
Required:
Calculate the maximum dividend NTI could pay at the end of 2017, assuming dividends are paid once annu-
ally at year-end

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