The Daily News Has Projected Annual Net Income of $272,600

question 23

Multiple Choice

The Daily News has projected annual net income of $272,600, of which 28 percent will be distributed as dividends. Assume the company will have net sales of  $75,000 worth of common stock. What will be the cash flow to stockholders if the tax rate is 21 percent?

• A) −$75,000
• B) $1,328
• C) $24,623.52
• D) $76,328
• E) $151,328

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Definitions:

Side Effects

Secondary, often unintended consequences of a process, action, or medication, which can be either beneficial or harmful.

Whistle-blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization that is either private or public.

Unethical Practices

Actions that do not conform to accepted moral standards, often undermining trust and integrity in a business setting.

Superiors

Individuals who hold a higher rank or position and have authority over others within an organizational hierarchy.