Calculate the Following

question 6

Short Answer

Calculate the following:
$$\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \begin{array} { l } \text { Time (in } \\\text { years) }\end{array} & \begin{array} { l } \text { Simple } \\\text { Interest }\end{array} \\\hline \$ 55,000 & 6.25 \% & \text { ? } & \$ 5,156.25 \\\hline\end{array}$$

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Definitions:

Fixed Assets

Long-term tangible property owned by a business that is used in producing goods and services.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Dividend Policies

Strategies a corporation adopts for allocating its profits to shareholders in the form of dividends.

Target Payout Ratio

A percentage that represents the amount of earnings a company decides to distribute to its shareholders in the form of dividends.