What will be the effect on retained earnings if a firm

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Reference no: EM13976740

1. What will be the effect on retained earnings if a firm with 5,600 shares outstanding earns $10 per share and has a 30% plowback ratio? It will increase by:

$39,200.

$16,800.

$34,200.

$56,000.

2. A firm sells its $1,000,000 receivables to a factor for $964,000. Average collection period is one month. The effective annual rate is: (Do not round intermediate calculations.)

55.27%.

52.16%.

44.81%.

19.49%.

Reference no: EM13976740

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