What is its new book value at the start of the next year

Assignment Help Financial Management

Reference no: EM13980836

A firm begins the year with a Book value of $10 million. During the year it generates $5 million in net profits. It paid $1 million in interest on its bank loan. It decides to pay $3 million in dividends. What is its new Book Value at the start of the next year?

a) $11 million

b) $12 million

c) $15 million

d) $16 million

Reference no: EM13980836

Questions Cloud

What was the epa doing and why : We will accept public comments until March 15, 2002. What was the EPA doing and why? What could those who had concerns do at that point?

Bank account to cover college expenses : Beginning three months from now, you want to be able to withdraw $1,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .39 percent interest per quarter, how much do you need to have in your..

Describing wangari maathai green belt movement : Using APA-style formatting, write a 2-3 page paper describing Wangari Maathai's Green Belt Movement. In your response, list four ways in which we can use the forests more sustainably and list three ways in which governments and individuals can red..

What force would have to be exerted on the strap : A solid wheel accelerates at 3.25 rad/s2 when a force of 4.5 N exerts a torque on it. If the same angular velocity were desired, what force would have to be exerted on the strap?

What is its new book value at the start of the next year : A firm begins the year with a Book value of $10 million. During the year it generates $5 million in net profits. It paid $1 million in interest on its bank loan. It decides to pay $3 million in dividends. What is its new Book Value at the start of th..

Change of the balance sheet : At the end of a fiscal year, a company makes a net profit of $100 and does not pay a dividend. Which of the following is a possible change of the balance sheet?

What survey objectives would act : What survey objectives would ACT have in asking colleges how they use its essay test? What objectives would Kaplan have for its survey research?

How many revolutions does the disk make before it stops : Starting with an agular velocity of 13.90 rev/s, the disk is subjected to a constant torque of 3.0 Nm until it stops. How many revolutions does the disk make before it stops?

Appropriate discount rate-what is the present value : An investment will pay you $33,000 in 12 years. If the appropriate discount rate is 6 percent compounded daily, what is the present value?

User Account

All Pages