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This is an accounting term which is applicable to stockholders of closely going businesses. Accumulated earnings and profits are a company's net profits after subtracting distributions to the stockholders. This is computed as of the commencement of the year.
Accumulated earnings and profits are equivalent to retained earnings, as both terms refer to the net profits of a company after shareholder disseminations. However, accumulated earnings and profits also can involve reserve accounts, which are not deductible and which can be involved when calculating taxable earnings.
Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year to the nearest ce
Risk Aversion and the Equity Risk Premium Case Study On the advice of some of its wealthiest alumni, College has borrowed £15m on a 40-year inflation- linked loan. One year
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CivilENG, LTD has a target capital structure of 35% debt and the remainder common equity. CivilENG’s cost of debt on the first $3 million borrowed is 7.5%, but that cost of debt in
Source of short term finance
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