The Atlantic Co

question 21

Multiple Choice

The Atlantic Co. is an all-equity company with sales of $21,600, costs of $14,780, depreciation of $2,000, and taxes of $1,012. The dividend payout ratio is 12 percent. Sales are expected to increase by 22 percent next year. What is the pro forma addition to retained earnings assuming all costs vary proportionately with sales?

• A) $4,899
• B) $3,745
• C) $3,892
• D) $4,011
• E) $4,088

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Definitions:

Allosteric Regulation

The process of regulating the activity of a protein by binding an effector molecule at a site other than the protein's active site, leading to a change in its activity.

Regulatory Molecules

Chemicals within biological organisms that control or regulate the activity of genes and proteins, playing crucial roles in processes such as metabolism and cell division.

Active Site

The specific region of an enzyme where substrate molecules bind and undergo a chemical reaction.

Feedback Inhibition

is a regulatory mechanism where the output of a process inhibits the process itself, often used in metabolic pathways to maintain balance.