“typical” firm reports $20 million of retained earnings on its balance sheet‚ could its directors declare a $20 million cash dividend without having any qualms about what they were doing? Explain your answer. Its directors could declare a $20 million cash dividend without having any qualms about what they were doing‚ because retained earnings may not held as cash. Retained earnings represent the cumulative total of all earnings kept by the company during its life. Therefore‚ $20 million would be an investment
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ON COMPARATIVE STUDY OF RETAINED EARNINGS OF LUPIN v/s WYETH INTRODUCTION Managing a company’s operations‚ marketing and sales activities and expense management are but a few of the decisions that management has to deal with. After it has made a profit the company will then need to decide what to do with those profits. Among the options for using profits are: operations‚ returning cash to shareholders‚ or keeping cash in reserve for future use Retained earnings represent the amount a company
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I can honestly say that if I won 50 million dollars in the lottery I would enjoy my winnings with my family by doing anything and everything they desire. Although I have given to charity in the past it would not be on the top of my list for things to do. I’m pretty certain that everyone wants that life of luxury and while many of us are already living quite well it just may not be well enough. So if you say you don’t want a life where you can have anything you want in this
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Undistributed and retained profit is the main source of internal fund. The average cost rate of different sources of fund is known as cost of capital. Cost of capital is only minimum required rate of return to earn on investment and it is not the actual earning rate of the firm. Retained earnings‚ used as a part of the capital structure of a business firm‚ is that part of the earnings available to common shareholders not paid out as dividends or the earnings plowed back into the firm for growth
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GROUP ACTIVITY: UTILIZING THE FINANCIAL MARKET As a financial manager of a large firm‚ you plan to borrow $70 million over the next year. 1) What are the most likely ways in which you can borrow $70 million? The best way the company must do in order to borrow $70 million over the next year is by issuing bonds to financial institutions such as mutual funds and insurance companies. As to attract investors‚ issuing bonds is seems to be less risky than shares and they may be willing to purchase them
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RETAINED EARNINGS CHAPTER 19 DEFINITION: Retained Earnings represents the cumulative balance of: Periodic net income or loss Dividend distribution Prior periodic errors Changes in accounting policy‚ and Other capital adjustments The illustrative statements of financial position and statement of changes in equity in IAS 1 and IAS 8 still maintain the title “retained earnings” 2 KINDS OF RETAINED EARNINGS Unappropriated Appropriated UNAPPROPRIATED RETAINED EARNINGS Represent
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American culture had a slow steady start‚ and for a while it seemed as though it would remain that way. This was until an island on the coast of New York changed American culture and society. This island was called Coney Island. What was Coney Island and what did it bring to the Americans? It was an island that fulfilled the changing wants of American’s. This island influenced American’s wants from labor‚ and high society to leisure. Though the island didn’t remain on its all-time-high forever
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problematic‚ however‚ because it involved forcing on groups’ various values and viewpoints on other‚ even if it was done with the best of intentions. Consider ‘assimilation’ in the context of Coney Island amusement parks. According to Kasson’s Amusing the Million‚ who embraced the “mass culture” embodied by the parks‚ and why? Who rejected it‚ and why?” 3-4 pages (700-800 words) Accepted it: The Young Americans & Immigrants trying to americanize their lives. It was more thrilling than other options
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A Cool Million is a political novel‚ in the sense that it targets a political establishment which is corrupt and racist‚ bullying and philistine‚ but its strangeness left the political movement largely nonplussed. It is a novel of the end of the American dream. It is Candide recast for twentieth-century America‚ the destruction of an innocent by a system he simply cannot comprehend. Lem Pitkin is a simple‚ if not simple-minded‚ boy who is torn apart – literally so‚ he is systematically divested of
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Class Discussion 1. Dartmouth Inc’s latest net income was $1‚250‚000‚ and it had 225‚000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare? 2. Garcia Industries has sales of $200‚000 and accounts receivable of $18‚500‚ and it gives its customers 25 days to pay. The industry average DSO is 27 days‚ based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the
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