Question

Suppose a company had $9 million net income for year 2014, and paid out dividends of...

Suppose a company had $9 million net income for year 2014, and paid out dividends of $0.5 per share. The company has 10 million shares outstanding. If the company had $35 million retained earning at the end of year 2013, the balance of the retained earnings now (year 2014) is $_____ millions. Answer in millions, and round it to a whole million. Do not include the $ sign or comma, e.g., 55 (for $55 million).

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer - 39 million

Reason - addition to retained earning = total net income - dividend

Addition to retained earnings = 9 million - ( 10 million shares * 0.5 per share)

Addition to retained earning = 9 million - 5 million

Addition to retained earning = 4 million

Therefore, total retained earning = opening balance of earning + addition

Total retained earnings (2014) = 35 million + 4 million = 39 million.

If the solution helped, please give it a thumbs up. Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
This year CVS reported net income of $1,150 million and paid out dividends of $497 million....
This year CVS reported net income of $1,150 million and paid out dividends of $497 million. If net income is projected to increase by 3% next year, what is the projected amount of earnings available to be reinvested (in $ millions) next year? That is, what is the expected increase in retained earnings? Assume the dividend payout ratio is expected to remain constant.
The company has net income of $30,000 for the year and paid dividends of $40,000. At...
The company has net income of $30,000 for the year and paid dividends of $40,000. At the beginning of the year, the company had common stock of $50,000, paid-in surplus of $60,000, and retained earnings of $70,000. At the end of the year, the firm had total equity of $170,000. What is the amount of the net new equity raised during the year?
Your company had net income of $120,000 for the year just ended. Dividends of $72,750 were...
Your company had net income of $120,000 for the year just ended. Dividends of $72,750 were paid on the company's beginning equity of $1,320,000. If the company has 92,000 common shares outstanding with a current market price of $11.25 per share, what is the required rate of return on the shares assuming a constant sustainable growth rate of dividends?
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...
Your company had net income of $100,000 for the year just ended. Dividends of $52,750 were...
Your company had net income of $100,000 for the year just ended. Dividends of $52,750 were paid on the company's beginning equity of $1,100,000. If the company has 76,000 common shares outstanding with a current market price of $9.25 per share, what is the required rate of return on the shares assuming a constant sustainable growth rate of dividends? 11.21% 11.52% 11.82% 12.12% 12.42%
Your company had net income of $102,500 for the year just ended. Dividends of $55,250 were...
Your company had net income of $102,500 for the year just ended. Dividends of $55,250 were paid on the company's beginning equity of $1,127,500. If the company has 78,000 common shares outstanding with a current market price of $9.50 per share, what is the required rate of return on the shares assuming a constant sustainable growth rate of dividends? 11.66% 11.96% 12.26% 12.56% 12.86%
XYZ Company's analysis on December 31: - net income for the year was 10.5 million -...
XYZ Company's analysis on December 31: - net income for the year was 10.5 million - preferred stock dividends of 2 million were paid for the year - common stock dividends of 3.5 million were paid for the year - 20 million shares of common stock were outstanding on Jan 1, 2001 - The company issued 6 million new shares of common stock on Apr 1, 2001 The company's basic earnings per share for 2001 was closest to?
In the past year, the Canadian Company paid $38,100 in dividends on the company's equity of...
In the past year, the Canadian Company paid $38,100 in dividends on the company's equity of $1,587,500. The company had net earnings of $127,000 with an ROE of 8%. If the company has 100,000 shares outstanding with a current market price of $11.0625 per share, what is the required rate of return?
Alternative: Dividend Policies: In 2013, Keenan Company paid dividends totaling $3,600,000 on net income of $10.8...
Alternative: Dividend Policies: In 2013, Keenan Company paid dividends totaling $3,600,000 on net income of $10.8 million. Note that 2013 was a normal year and that for the past 10 years, earnings have grown at 10%. However in 2014, earnings are expected to jump to $14.4 million and the firm expects to have profitable investment opportunities of $8.4 million. It is predicted that Keenan will not be able to maintain the 2014 level of earnings growth because of the high...
Cooper Industries, Inc., began 2019 with retained earnings of $24.15 million. During the year it paid...
Cooper Industries, Inc., began 2019 with retained earnings of $24.15 million. During the year it paid four quarterly dividends of $0.32 per share to 3.08 million common stockholders. Preferred stockholders, holding 493,000 shares, were paid two semiannual dividends of $0.73 per share. The firm had a net profit after taxes of $5.41 million. Prepare the statement of retained earnings for the year ended December 31, 2019.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT