Sentry Manufacturing paid a dividend yesterday of $5 per share (D0 = $5 ). The dividend is
expected to grow at a constant rate of 8% per year. The price of Sentry Manufacturing's stock today
is $29 per share.
If Sentry Manufacturing decides to issue new common stock, flotation costs will
equal $2.50 per share. Sentry Manufacturing's marginal tax rate is 35%. Based on the above
information, the cost of retained earnings is
A) 28.38%. B) 31.40%. C) 24.12%. D) 26.62%.
D
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Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees' $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
A. Credit to Employee Benefits Expense $11,000. B. Debit to Employee Benefits Expense $11,000. C. Debit to Medical Insurance Payable $5,000. D. Debit to Payroll Taxes Expense $11,000. E. Debit to Employee Retirement Program Payable $6,000.
Answer the following statements true (T) or false (F)
1. Tariffs are common today and still growing in number since they have a long history of successfully protecting jobs in this country. 2. As a result of recent negotiations, the General Agreement on Tariffs and Trade (GATT) is expected to supersede the WTO by 2015. 3. The organization that assists in smoothing the flow of money between nations is the International Monetary Fund. 4. Recently, the International Monetary Fund has had a high-profile role in assisting some weaker European countries, including making loans to Greece, Portugal, and Ireland.
The Honomichl Top 50 reports the top 50 international firms based on revenues
Indicate whether the statement is true or false
Based on the following information from Scranton Company's balance sheet, calculate the current ratio. Current assets$114,000?Investments 55,400?Plant assets 340,000?Current liabilities 48,000?Long-term liabilities 99,000?Retained earnings 362,400?
A. 2.38. B. 1.15. C. 0.42. D. 3.47. E. 3.53.