Problem 9-04 If a corporation earns $300,000 and the payout ratio (proportion distributed) is 35 percent, what is the c...

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Question

Problem 9-04 If a corporation earns $300,000 and the payout ratio (proportion distributed) is 35 percent, what is the change

business finance

Answer 1

Answer #1

Net Income = $300,000

Dividend Paid = (0.35)(300,000)

Dividend Paid = $105,000

Change in Retained Earning = Net Income - Dividend Paid

Change in Retained Earning = 300,000 - 105,000

Change in Retained Earning = $195,000

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Answer 2

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