Jefferson has a capital balance of $65,000 and devotes full time to the partnership. Washington has a capital balance of $45,000 and devotes half time to the partnership. If no other information is available regarding distributions, in what ratio is net income to be divided?
a. 6.5:4.5
b. 1:1
c. 4.5:6.5
d. 1:2
b
You might also like to view...
A market is a group of competitors selling similar products.
Answer the following statement true (T) or false (F)
The classroom on a college campus is an example of a(n)
A) natural resource. B) capital resource. C) entrepreneurial resource. D) human resource.
A currency trader observes the following quotes in the spot market: 1 U.S. dollar =10.875Mexican pesos1 British pound =7.500Danish krone1 British pound =1.65U.S. dollarsGiven this information, how many Mexican pesos can be purchased for 1 Danish krone?
A. 2.3446 B. 2.0097 C. 2.9188 D. 2.0815 E. 2.3925
One implication of the bird-in-the-hand theory of dividends is that a given reduction in dividend yield must be offset by a more than proportionate increase in growth in order to keep a firm's required return constant, other things held constant.
Answer the following statement true (T) or false (F)