What is expected addition to retained earnings for year

Assignment Help Financial Management
Reference no: EM131299968

The ThisInstructorIsSoNice Company expects to have net income of $18 million for the year, and to pay out $3 million in dividends to common stockholders. There is no preferred stock. What is the expected "addition to retained earnings" for the year?

Reference no: EM131299968

Questions Cloud

Calculate the amount of money that emily needs to set aside : Emily Smith just received a promotion at work that increased her annual salary to $42,000. She is eligible to participate in her employer’s 401(k) retirement plan to which the employer matches, dollar for dollar, workers’ contributions up to 5% of sa..
What was the net income for the year : The ThisIsFun Company paid out $15 million in common stock dividends. Year-end retained earnings totaled $145 million. In the previous year retained earnings totaled $144 million. What was the net income for the year? Show all work for full credit.
Premium or discount relative to the spot rate : Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.5% in Germany. In the spot market, 1 euro equals $1.47 dollar. Is the 90-day forward rate trading at a premium or discount relative to the..
What is one example of a money market security : What is one example of a money market security and one example of a capital market security? What is the retained earnings account on the balance sheet? Include how this number changes from year to year. What ratio indicates how well the operating as..
What is expected addition to retained earnings for year : The ThisInstructorIsSoNice Company expects to have net income of $18 million for the year, and to pay out $3 million in dividends to common stockholders. There is no preferred stock. What is the expected "addition to retained earnings" for the year?
What is the present value of a security : What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
What are some actions an entrenched management : What are some actions an entrenched management might take that would harm shareholders? How is it possible for an employee stock option to be valuable even if the firm's stock price fails to meet shareholders' expectations?
Moving a business unit and corporate hq to another country : What are the drawbacks and benefits associated with moving a business unit and corporate HQ to another country? If you were a CEO or a business unit head, under what conditions would you consider moving HQ?
Cut salaries or cut jobs : When moving to another country and culture in order to manage a subsidiary, it is important to remember that what works in one country may backfire in another. Write a paper on the topic of cutting salaries or cutting jobs.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the major determinant of bond prices

What is the major determinant of bond prices? Explain your answer. The ABC bond carries a 6.5% semi-annual coupon rate and matures in 23 years. If the market yield on these bonds is 8%, calculate the price of the bond. If interest rates (yields) do n..

  The debt-preferred stock and common stock

Capital Co. has a capital structure, based on current market values, that consists of 22 percent debt, 17 percent preferred stock, and 61 percent common stock. If the returns required by investors are 10 percent, 12 percent, and 17 percent for the de..

  Best example of two mutually exclusive projects

Which one of the following is the best example of two mutually exclusive projects?

  What are NPV and IRR of decision to replace the old machine

A firm is considering an investment in a new machine with a price of $18 million to replace its existing machine. The current machine has a book value of 6million and a market value of $4.5 million. The new machine expected to have a four-year life, ..

  Filers capital structure weights on market value basis

Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. Filer manufacturing also has two bond issues outstanding. What are Filer's capital structure weights on a book v..

  Forms of organizations is easiest to form-corporation

Which of the following forms of organizations is the easiest to form? Which of the following is a strength of a corporation? The 2002 law that established the Public Company Accounting Oversight Board (PCAOB) was called ________.

  The bond makes semi-annual payments

USF Inc. issued a 20 year bond at a coupon rate of 7.0 percent. The bond makes semi-annual payments and has a par value of $1000. If the YTM on this bond is 6.0 percent, what is the bond's current price?

  Calculate person federal tax liability if filing status

Suppose an individual’s income for 2015 consisted of $42,000 in wages, $200 of qualified dividends, $500 in bank interest, and a $1,200 gain from the sale of stock purchased in 2010 and sold in 2015. Calculate this person’s federal tax liability if t..

  Prepare worksheet consolidation entry or entries needed

Frazer Corporation purchased 60 percent of Minnow Corporation’s voting common stock on January 1, 20X1. On January 1, 20X5, Frazer received $225,000 from Minnow for a truck Frazer had purchased on January 1, 20X2, for $295,000. Prepare the worksheet ..

  What is the book value per share of common stock

A company has 1,000 shareholders who own a total of two million shares of its common stock currently selling at $88.00 per share. The company earned $14,000,000 after taxes. The annual dividend is $0.60 per share. The firm has assets of $132,000,000 ..

  How much is equivalent present value of these payments

You purchased an immediate annuity which pays you $3,000 each year from next year for 15 years. Assuming interest rate is 5%, how much is the equivalent present value of these payments? At the same 4% annual interest rate, the future value of $1,000 ..

  The project will require an initial investment

The project will require an initial investment of $20,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $9,000, after taxes, if the project is rejected. What should Garida do ..

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