Bloomington Homes Needs $168 000 for New Investments Next Year

question 11

Multiple Choice

Bloomington Homes needs $168 000 for new investments next year.The company has a debt-equity ratio of 0.55 and has a residual dividend policy.The after-tax earnings for the year that just ended were $247 500.How much of their annual earnings will the firm pay out in dividends?

• A)$139 112.90
• B)$102 348.16
• C)$71 900.00
• D)$0
• E)$147 500.00

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Definitions:

Ebbinghaus

Refers to Hermann Ebbinghaus, a psychologist known for his research on memory, specifically the forgetting curve and the spacing effect.

Forgetting Curve

A hypothesized graph showing the decline of memory retention in time, illustrating how information is lost over time when there is no attempt to retain it.

Cornell System

A note-taking system that divides a page into three sections: cues, notes, and summary, to organize information efficiently.

Informal Outline

A rough or unstructured framework guiding the planning and organization of a writing piece or speech.