victor rumsfeld inc.'s dividend policy is under review by its board. its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $650,000. if the company follows a residual dividend policy, what total dividends, if any, will it pay out? select the correct answer. a. $3,210 b. $4,280 c. $0 d. $2,140 e. $1,070

Answers

Answer 1

40% of the anticipated capital budget of $200,000 must be raised through equity, and because no new share issuance is planned, this money will likely come from the stockholders' profit.

What sort of equity is that, exactly?

Any asset's equity is indeed the ownership remaining after all liabilities related to it have been paid off. For instance, if you pay $10,000 on a car you own that is worth $25,000, you have $15,000 in equity in the asset. It is the worth of or interest in assets held by the most inexperienced class of investors.

Is equity a desirable trait?

Home equity is a popular technique for many people to gradually increase their own wealth. as you make payments on your mortgage and your house's value rises over time

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Related Questions

What are the different elements of working capital and explain actions that Management of a business entity might take to reduce the length of the cycle

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The different elements of working capital are current current asset and current liabilities. The management of a business entity might take ratio analysis to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

What is working capital management?

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

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Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:Required:Foxy Investigative ServicesEnd-of-Period SpreadsheetFor the Year Ended November 30, 20181. A. Prepare an income statement for the year ended November 30, 2018. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles.B. Prepare a retained earnings statement for the year ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.C. Prepare a balance sheet as of November 30, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.3. If Retained Earnings had instead decreased $46,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? If required, use a minus sign to indicate a net loss.

Answers

The Income Statement, Balance Sheet, Retained Earning and Closing Entries attached below:

What is Balance Sheet?

A balance sheet provides a summary of a company's assets, liabilities, and shareholders' equity at a specific point in time, as indicated at the top of the statement. This is one of the most important documents in a company's financial statements.

In financial accounting, a balance sheet is a summary of an individual or organization's financial balances. It could be a private limited company, a sole proprietorship, a business partnership, a corporation, a private limited liability company, or another organization like a government or non-profit.

A balance sheet can provide you with a snapshot of your company's financial situation at any given time. Business owners can use a balance sheet, like an income statement or a cash flow statement, to see how their company is doing financially.

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Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers.

Benchmark Company is viewed as the best company in Iffy's industry, the company against which all other companies in the industry compare themselves.

Which ONE of the following statements is TRUE?

The following DuPont framework ratios are for Iffy Company and Benchmark Company:

Iffy | Benchmark
Return-on-Sales (5%%) | (7%)

Asset Turnover (2.0) | (1.5)

Assets-to-Equity (2.0) | (2.0)

Answers

(B) Iffy | Benchmark Return-on-Sales (5%%) | (7%) is true about Benchmark Company is viewed as the best company in Iffy's industry

what is Benchmark ?

Benchmarking is the process of contrasting corporate procedures and performance indicators with industry benchmarks and other businesses' best practices. The three main metrics are quality, time, and cost.

What is a benchmark example?

Benchmarks, for instance, could be used to compare the operations of one retail location with those of another location in the same chain. External benchmarking, also known as competitive benchmarking, evaluates a company's performance in relation to that of other businesses.

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The competitive threat that outsiders will enter a market is weaker when

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The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.

The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.

There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.

Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.

The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.

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what is the author's main purpose in this article

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The main purpose of the article is to talk about the fact that the companies were pushing to have better ways of having to deal with the people that work in their companies.

What is the main purpose of an article?

This is the term that is used to refer to the central message that a given article is trying to pass. It is what the article is making a statement about. This particular article can be said to be more concerned with the ways that businesses have tpo treat the people that work in their organizations.

It talks about the concept of ethical dealings and fairness and all of the ways that they can focus on carrying out other responsibilities that are just beyond making profits in the businesses that they do.'

Hence we can say that The main purpose of the article is to talk about the fact that the companies were pushing to have better ways of having to deal with the people that work in their companies.

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Technology – the second cruel correspondence

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The negative consequences of technology on society are largely directed to mass-produced products, with social media receiving the most criticism.

Many studies have been done on this topic, and social networking sites has often been identified as both the primary source of misleading information, encouraging hate and harassment and the number two source of loneliness, sadness and depression.

Children who use technology excessively are more susceptible to mental health problems, such as attention deficit disorder, poor creativity, language development delays, emotional and social development delays, and addiction to digital gadgets.

Technology's drawbacks:

Addiction. There have been many cases of technology addiction and ethical conundrums in recent years. The future of humanity appears to be moving toward the society that many films have predicted: one in which robots and artificial intelligence (AI) play a significant role. Dehumanization, Pollution, Privacy, and other issues.

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What is your expectation of the requirements to be successful in the cosmetology/manicurist program?

Answers

Cosmetologist responsibilities include:

Conversing with clients to better understand their requirements and making suggestions for improving their appearance. Cutting, styling and coloring hair and doing scalp treatments. Applying make-up creating a variety of different looks according to the requests of the client.

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $19.00 per direct labor-hour and $15.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $21.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 375 $ 39 Direct labor $ 168 $ 84 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.) 2. If Job N-60 consists of 10 units, what is the unit product cost for this job?

Answers

The total manufacturing cost assigned to Job N-60 is $ 696. If Job N-60 consists of 10 units, the unit product cost for this job is $111.00.

How to find the manufacturing costs ?

Direct materials (Assembly + Testing & Packaging) = $375 + $39

= $414

Direct labor (Assembly + Testing & Packaging) = $168 + $84

= $252

Overhead applied (Assembly + Testing & Packaging) = $19 * 168 + $15 * 84 = $316 + $126

= $442

Total manufacturing cost = $414 + $252 + $442

= $1110

Unit product cost = Total manufacturing cost / Number of units

= $1110 / 10

= $111.00

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Identify each of the following items as a capital expenditure (C), an immediate expense (E), or neither (N). Transaction Type of Expenditure 1. Constructed a new parking lot on leased property for $300,000. 2. Paid property taxes of $75,000 for the first year a new administrative services building was occupied. 3. Paid dividends of $40,000. 4. Paid interest on a six-month note payable that financed the construction of a new plant building, $550,000. 5. Purchased equipment for a new manufacturing plant, $6,000,000. Transaction Type of Expenditure 6. Paid $90,000 for the installation of the equipment in (5). 7. Repaired plumbing in existing manufacturing plant, paying $27,000. 8. Paid $148,000 to tear down an old building on a new manufacturing plant site. 9. Purchased new network servers for $29,000. 10. Paid maintenance costs of $31,000 on the equipment in (5) during its first year of use.

Answers

To Identify each of the given transaction as a capital expenditure (C), an immediate expense (E), or neither (N).

Immediate Expense can be defined as the expenses that are recorded immediately as they occur or as they are incurred which in turn lead to reduction in the net profit of a company or an organization income statement.

Capital expenditure are money which a business, company or organization used to carryout the following:

Repair assets Buy assetsMaintain assets so as to extend the assets useful life

Now let identify each transaction as a capital expenditure (C), an immediate expense (E), or neither (N).

Constructed a new parking lot on leased property for $300,000.