Table 5E-O'Brien Corporation Current assets Cash Balance Sheet, End-of-last-year (thousands of $) Current liabilities Ac
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Table 5E-O'Brien Corporation Current assets Cash Balance Sheet, End-of-last-year (thousands of $) Current liabilities Ac
O'Brien Corporation had the balance sheet shown in Table 5E at the end of last year. The company had net income of $150,000 on sales of $3,000,000, and paid $50,000 in dividends last year. O'Brien is at full capacity and considers all its assets, accounts payable, and accrued liabilities as spontaneous. Assume the net profit margin and dividend payout ratio remain the same this year, and that sales are projected to be $3,300,000. D Reference: Ref 5-1 Using the percentage-of-sales method, what is the forecasted end-of-this- year balance in the retained earnings account (in thousands of dollars)? OOO $600. $110. $765. $710.
Equity investors: Are given bonds in return for the money they invest. Share in the success of the firm. Receive a guaranteed rate of return. Are protected from losses if the firm does poorly.
A diversified investment in all the Standard and Poor's 500 stocks would: Have no risk. Earn the risk-free rate of interest. Earn a rate to compensate for the total risk of each of the securities in the portfolio. Earn a rate equal to the sum of the risk-free rate plus the risk of the market.