The plowback ratio is : The dollar increase in net income divided by the dollar increase in sales . Equal to net income divided by the change in total equity . Equal to one minus the retention ratio . The change in retained earnings divided by the dividends paid . The percentage of net income available to the firm to fund future growth . Which one of the following is the financial statement that summarizes a firm ’ s revenue and expenses over a period of time ? Statement of cash flows Market value report Tax reconciliation statement Balance sheet Income statement Kelly ’ s Corner Bakery purchased a lot in Oil City six years ago at a cost of $ 278000 . Today , that lot has a market value of $ 264,000 . At the time of the purchase , the company spent $ 6,000 to level the lot and another $ 8,000 to install storm drains . The company now wants to build a new facility on that site . The building cost is estimated at $ 1.03 million . What amount should be used as the initial cash flow for this project ? - $ 1,294,000 - $ 1,322,000 - $ 1,045,000 - $ 1,308,000 - $ 1,308,000
Webster United is paying a dividend of $ 1.32 per share today . There are 350,000 shares outstanding with a market price of $ 22.40 per share prior to the dividend payment . Ignore taxes . Before the dividend , the company had earnings per share of $ 1.68 . As a result of this dividend , the : Retained earnings will decrease by $ 350,000 . Earnings per share will increase to $ 3 . Total firm value will not change .