User Account

All Pages

What total dividends will be paid

Assignment Help Financial Accounting
Reference no: EM132916707

Problem 1: ABC had after-tax earnings of ?5,000,000 in 2019. The company needs ?5,000,000 for new investments and plans to finance 70% of those investments with debt. If ABC follows a residual dividend policy, what total dividends will be paid?

a. ?0
b. ?1,500.000
c. ?5,000,000
d. ?3,500,000

Reference no: EM132916707

Questions Cloud

Calculate the flexible budget variance : Actual purchase and use during last month was 16,000 kg at £2 per kg; actual output was 74,000 pies. Calculate the flexible budget variance
What the amount reported in sunland income statement : Ignoring income taxes, the amount reported in Sunland's 2021 income statement as a result of Sunland's available-for-sale investment in Oriole was
Give the entries : However, there were some title problems, and drilling was delayed. Legal costs incurred for title defense were $50,000. Give the entries
What the amount of abc accounts receivable is : 60% of customers take the discount and pay on day l0 while the rest of the customers pay on day 30, the amount of ABC's accounts receivable is
What total dividends will be paid : If ABC follows a residual dividend policy, what total dividends will be paid? The company needs ?5,000,000 for new investments and plans to finance 70%
Calculate FBT liability for the mobile phone : The Bank provided loans totalling $5,000,000 in mortgage loans, equally to 10 of its staff during the year. Calculate FBT liability for the mobile phone
What is the market value of the firm of ABC Company : Debt capitalization rates are 12 percent and 8 percent, respectively. Assume no corporate income taxes. What is the market value of the firm?
Determine the value of each of the next five payments : Determine the value of each of the next five payments, assuming they are of equal size. The present value of an annuity using an effective annual discount
Communicate my plan to students caregivers : How and when will I explain my classroom management plan to students? How and when will I communicate my plan to students' caregivers?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the bank reconciliation

Using the code letters below, show how each of the items listed could be handled in preparing bank reconciliation.

  What is kasar actual tax rate for the current year

Kasar Co. has net income, before taxes, of $335,000, including $35,000 in interest revenue from municipal bonds. What is Kasar actual tax rate for current year

  How much should pay for the investment

How much should she pay for this investment if she wishes to earn a 6% rate of return? Provide complete calculations in your answer

  What is the weighted average cost of capital for easy car co

Currently have a yield to maturity? (YTM) of 14%. What is the weighted average cost of capital (WACC) for Easy Car Corp. if the corporate tax rate is 20%?

  How much final tax will be withheld

Mr. Conrado won the P50,000,000 6/49 Superlotto Jackpot of the Philippine Charity Sweepstakes Office. How much final tax will be withheld?

  Prepare flounder journal entries

Flounder leases the equipment to Morgan Corporation for one year with one rental payment of $16,300 on January 1. Prepare Flounder's 2017 journal entries.

  What are the advantages of using the roi measure

What are the advantages of using the ROI measure rather than the value of division profits as a performance evaluation technique?

  Unqualified absolutism is choosing the lesser of two evils

Not believing in absolutes in an absolute. One's personal ethics may be separated from one's business ethics. Conflicting absolutism states that moral conflicts do not exist because God cannot contradict himself. Unqualified absolutism is choosing th..

  How is this investment to be financed

Imagine the scenario. You have just discovered a new process for enhancing the flavour of coffee beans. How is this investment to be financed

  Calculate the cost of the ending inventory and cost of goods

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 400 units occurred on May 15 for a selling price of $8 and a sale of 440 units on June 27 for 49..

  What is the portfolio new beta

The portfolio's beta is 1.2. You sell one stock with a beta of .8 for 5,000 and use that to buy a stock with a beta of 1.6. What is the portfolio's new beta.

  What are debt and equity investments and how do they differ

What are debt and equity investments and how do they differ? Why does the degree of influence by investor over investee affect accounting for equity investments

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd