If a typical firm reports $20 million of retained earnings on its balance sheet, could its directors declare a $20 million cash dividend without any qualms? Explain why or why not.

Q: firm’s retained earnings represent: That portion of earnings put aside for reinvestment.…

A: Retained earnings is that portion of profit which is not distributed to shareholders and retained in…

Q: Want answer

A: Step 1: a) The amount of repurchase stock = $22,400 Therefore, The shareholder's equity will…

Q: could its directors declare a P20million cash dividend without having any qualms

A: The dividend can be distributed from the profits earned by an entity during a year. An organization…

Q: What is the most the firm can pay in cash dividends to each common stockholder? (Assume that legal…

A: Dividend Payout and Retained Earnings are two fundamental concepts in corporate finance related to a…

Q: A firm has a market value equal to its book value. Currently, the firm has $500,000 of excess cash,…

A: The number of shares outstanding refers to the shares currently circulated in the market. Share…

Q: the retained earnings on a balane sheet are $80,000. Without seeing the rest of hte balance sheet,…

A: Retained earnings implies that portion of earnings which have been retained by the company and not…

Q: If Superior Paint Company reports $50 million in retained earnings, can it declare a dividend of the…

A: Retained Earnings (RE)  refers to the amount of net income earned by the company, which is generally…

Q: When a company pays a dividend, it isn't as simple as getting a paycheck from one's employer. There…

A: Declaration Date: This is the date when a company's board of directors publicly announces its…

Q: One major component of Equity is Retained Earnings. What does Retained Earnings represent? Group of…

A: Retained earnings are undistributed profits of the company and the same is retained for future…

Q: A firm has a market value equal to its book value. Currently, the firm has excess cash of $7,000 and…

A: The process of evaluating a stock's intrinsic or fair value involves weighing a number of variables,…

Q: On a firm's income statement, you likely will see two entries for earnings per share (EPS): basic…

A: Basic Earnings per share = (Net Income - Preferred Dividend)/weighted average number of common…

Q: How could I describe business activities that affect a firm's cash flow within 250 words?

A: Cashflow statement contains the following activities: Operating Investing  Financing Cash flows…

Q: 12) After satisfying obligations to creditors, the government, and preferred stockholders, any…

A: The answer is A) common shareholders as cash dividends.Explanation:The answer is A) common…

Q: A firm lost $706,000 in one year. The firm's beginning retained earnings balance was $1,450,800 and…

A: Net loss = -706,000 (loss is indicated by a minus sign)Ending retained earnings = 120,000Beginning…

Q: The December 31, 2021, balance sheet of Chen, Incorporated, showed $149,000 in the common stock…

A: Net new equity raised during the year = Closing common stock and additional paid in surplus -…

Q: A company received dividends of $0.50 per share on 1,000 shares of common stock it holds. It is…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Wims, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of…

A: The fund that a company raised by issuing shares and retaining the profits for the business…

Q: P30 per share B.Dividends cannot legally be reinvested in the same company where they were earned…

A: 1) There is no fixed range of dividend payable by a company. It differs from on company to another.…

Q: A firm has a market value equal to its book value, excess cash of $1,000, and equity worth $20,800.…

A: Excess cash = $1000 Existing number of shares = 6000 Market value = $20,800 Price per share = Market…

Q: Suppose Rocky Brands has earnings per share of $2.19 and EBITDA of $31.2 million. The firm also has…

A: Enterprise value refers to the firm's total worthiness. In other words, it is the price at which the…

Q: You are considering purchasing the preferred stock of a firm but are concerned about its capacity to…

A: The cash distributions that a corporation hands out to its preferential owners are known as the…

Q: Price & Battisti just paid $2.40 per share to its shareholders. The cash for these payments did…

A: Distributions are a broader term that encompasses various forms of payments made to shareholders,…

Q: Which financial statement is provided by virtually all corporations worldwide? A. Statement of Cash…

A: 1. Correct Answer: C. Balance Sheet Explanation: The most significant financial statement of any…

Q: Suppose a firm does not pay a dividend but repurchases stock using $20 million of cash. The market…

A: Cash is an asset of the firm on which its value depends. If the company spends cash and repurchases…

Q: The December 31, 2021, balance sheet of Chen, Incorporated, showed $153,000 in the common stock…

A: Statement of cash flows is one of the financial statement being used in business. It shows all cash…

Q: Mr. Husker’s Tuxedos Corp. began the year 2021 with $280 million in retained earnings. The firm…

A: The retained earning of the company is the total earning which is retained over the years and it is…

Q: Suppose a firm has a retention ratio of 31 percent and net income of $4.6 million. How much does it…

A: Dividend Payout Ratio :— It is difference between 100% and percentage of retention ratio. Dividend…

Q: If a firm has retained earnings of $3.8 million, a common shares account of $5.8 million, and…

A: A dividend is a portion of a company's profits that is given to shareholders in the form of either…

Q: 6When a company declares a cash dividend, which of the following is the correct reporting on the…

A: Cash flows from financing activities are those activities  which  involve  borrowing and repayment…

Q: Electronics World Inc. paid out $42.6 million in total common dividends and reported $322 million of…

A: Net Income is the net earnings of the business. This is the difference between all revenues and all…

Q: A company has an enterprise value of $20mm.  It has debt outstanding of $4mm.  It has net income of…

A: Enterprise Value = Total Equity Value + Debt Value Debt Value = $4mm Enterprise Value = $20mm