Chicago Model Alchemists (CMA) is the superstar company of Illinois at this moment. In fact, it seems to gain a lot of popularity among Illinois businesspeople. As a result, three business firms founded two years ago ask for its services in order to examine the needs for external financing. More information is provided below:

 

1) Compute the retained earnings and the total equity required for each of the three firms?

Investment Past Dividend Policy Net Income Debt-to-Capital Ratio Firm A $38,250,450 46.75% $12,650,900 24.50% Firm B $125,330,600 13.25% $55,340,600 53.10% Firm C $780,320,670 7.50% $214,504,010 9.15%