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A firm has a balance sheet at the end of 2019 as in the figure. In 2020, it has a net profit of $150 million,
A firm has a balance sheet at the end of 2019 as in the figure. In 2020, it has a net profit of $150 million, and its payout ratio is 20%, the rest of the profit will go back to the firm. What will be the book value of equity at the end of 2020? Numbers in millions 2019 Balance Sheet Assets Liability $500 $200 Equity: ? $420 million $250 million $580 million $300 million
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