Existence for ten years

Assignment Help Finance Basics
Reference no: EM131693599

Valle Corporation has been in existence for ten years and during that time has been quite profitable. Except for the first year when the corporation sustained an operating loss, the company has experienced steadily increasing profits of $500,000 or better for the last nine years. All during this time, the corporation has never distributed any of its earnings. The corporation projects continued profits in the coming years but does not want to distribute the earnings as the owners are aware they will have to pay income tax on any dividends they receive. They decide they will leave the earnings in the corporation for as long as possible before taking any dividends. What can you tell the owners about this strategy?

Reference no: EM131693599

Questions Cloud

Explain how simulation is used in the real world : Explain how simulation is used in real world. Provide a specific example from your own line of work, or a line of work that you find particularly interesting
Management functions of planning-organizing and leading : Discuss the management functions of planning, organizing, leading, and controlling.
Identify descartes argument for the existence of god : Identify Descartes' argument for the existence of God. In your best ability, compare the different empiricist views of Locke and Berkeley.
What amount was transferred to finished goods : During 2017, Concord Corporation expected Job No. 51 to cost $200000 of overhead, What amount was transferred to Finished Goods
Existence for ten years : Valle Corporation has been in existence for ten years and during that time has been quite profitable.
Prepare segmented income statements : Segmented Income Statements, Product-Line Analysis Bismarck Company produces blenders and coffeemakers. During the past year, the company produced.
How government intervention have played role in stock market : In following assignment, you will discuss how government intervention may have played a role in stock market. Who supported the Dodd-Frank bill? Who opposed it?
Some of key differences between leaders and managers : What are some of key differences between leaders and managers? The chapter stressed the idea that project management is a “leader intensive” undertaking.
How does the charity report these events on a statement : These 1,000 shares are sold on December 26, 2017, for their fair value of $28,000. How does the charity report these events on a statement of cash flows

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

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