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.