use Retained earnings represent the amount a company has left after it has paid all its expenses‚ taxes‚ and dividends. A company can return all the cash it has left after it has taken care of its obligations‚ but that would handicap its efforts to expand operations‚ make acquisitions‚ and replace equipment. Some investors like when this figure is returned to them in the form of dividends‚ but most do understand that something must be reinvested for the long term. Companies may retain earnings
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Homework Problems Professor Hubler 07/12/2015 1. When an investor uses the equity method to account for investments in common stock‚ cash dividends received by the investor from the investee should be recorded as? D. A deduction from the investment account DI. DII. Sisk Company has owned 10 percent of Maust‚ Inc.‚ for the past several years. This ownership did not allow Sisk to have significant influence over Maust. Recently‚ Sisk acquired an additional 30 percent of Maust and now will use the
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INFOSYS LIMITED Balance Sheet as at EQUITY AND LIABILITIES SHAREHOLDERS’ FUNDS Share capital Reserves and surplus 2.1 2.2 287 33‚015 33‚302 NON-CURRENT LIABILITIES Deferred tax liabilities (net) Other long-term liabilities 287 29‚470 29‚757 Note September 30‚ 2012 in ` crore March 31‚ 2012 2.3 2.4 42 19 61 21 21 CURRENT LIABILITIES Trade payables Other current liabilities Short-term provisions 2.5 2.6 2.7 27 2‚788 2‚891 5‚706 39‚069 ASSETS NON-CURRENT ASSETS Fixed assets Tangible assets
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Ltd has issued 10 000 5% cumulative preference shares. Explain the meaning of the term “cumulative”. (1 mark) Answer: When a company fails to pay a dividend‚ holders of cumulative preference shares are entitled to receive this missed payment when a dividend is next declared. This rule is cumulative and they are also entitled to the current dividend provided sufficient cash is available. These payments receive priority over the claims of ordinary shareholders. 5. The share capital of Murdoch Ltd
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income of $475‚000. If it follows the residual dividend policy‚ what is its forecasted dividend payout ratio? (a) 40.61% (b) 42.75% (c) 45.00% (d) 47.37% (e) 49.74% | | | Student Answer: | | (d) 47.37 Equity required (Residual income) = $625‚000*40% = $250‚000 Dividend paid = $475‚000 - $250‚000 = $225‚000 Dividend payout ratio = 225000/475000 = 47.37% | | Instructor Explanation: | Answer is: d Text: pp. 570-572 - Residual Dividends‚ Chapter 14 Capital budget $625‚000 Equity
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FIN254 Case Time Value of Money Fall-2012 1) Assume that your father is now 50 years old‚ that he plans to retire in 10 years‚ and that he expects to live for 25 years after he retires‚ that is‚ until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $40‚000 has today (he realizes that the real value of his retirement income will decline year by year after he retires). His retirement income will begin the day he retires‚ 10 years from
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----------------------------------- Jul 23‚ 2006 Industry Report of the FMCG sector profiling P&G‚UL‚KMN‚ ----------------------------------- Financial Statement Analysis In the healthy and growth inducing economic scenario of the 2000’s‚ P&G has seen double digit revenues growth to around $56b in 2005. Keeping its costs low has seen it achieve healthy profit margins of around 11% - 12%. Refer Table 1. Table 1 Margins P&G (in %) 2003 2004 2005 Gross Margin 49 51
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I have chosen Costco as my focus‚ which is a large player in the Wholesale industry that vows to be fair to everyone involved in their business. The company strives to do things the right way which will be proven through the analysis of their Mission Statement‚ Press Releases‚ and a Forbes Article. Mission Statement: The Costco mission statement is short and simple. Costco states that their main priority is to provide members with quality goods and services at the lowest prices but that they will
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role before. According to Jimemez‚ the BDO-led consortium also agreed to restructure and extend the P1.8-billion loan another five years. He said the enterprise has started to turn around in recent months and was likely to give its shareholders dividends after seven years. Jimenez said BDO‚ China Bank‚ and the state-owned lenders Land Bank of the Philippines and the Development Bank of the Philippines were ready to foreclose on the loan when he was asked to take over from the majority shareholders
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that was made for cash resulted in additional depreciable assets of $31‚691 and goodwill of $102‚030. 7. Cash dividends were paid in the amount of $216‚158. 8. The firm declared and issued a 100 percent common stock dividend effective September 10‚ 20X1; that is‚ each shareholder received as a dividend a number of shares equal to his or her holdings prior to the dividend. The newly issued shares were valued at par in recording this transaction. 9. The firm spent $30‚609 to purchase
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