Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandhill, Inc., has revenue of $ 5 1 0 , 0 0 0 , costs of $ 3 1 5 , 0 0 0 ,

Sandhill, Inc., has revenue of $510,000, costs of $315,000, and a tax rate of 31 percent. If the firm pays out 46 percent of its earnings as dividends every year, how much earnings are retained and what is the firm's retention ratio? (Round answers to 0 decimal places e.g.
1,575. Intermedite calculation is rounded to 0 decimal places, e.g.5,275.)
Retained earnings $
Retention ratio %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Core Concepts

Authors: Raymond M Brooks

2nd edition

132671034, 978-0132671033

More Books

Students also viewed these Finance questions

Question

How do the white blood cells get into the brain and spinal cord?

Answered: 1 week ago

Question

=+48. Oil prices, again. Return to the oil price data of Exercise

Answered: 1 week ago