Denber Co Acquired 60% of the Common Stock of Kailey Corp

question 92

Multiple Choice

Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2010. For 2010, Kailey reported revenues of $810,000 and expenses of $630,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000. In consolidation, the total amount of expenses related to Kailey, and to Denber's acquisition of Kailey, for 2010 is determined to be

• A) $153,750.
• B) $161,250.
• C) $205,000.
• D) $210,000.
• E) $215,000.

Calculate and interpret the capacity utilization and the implications for firm growth.

Understand and calculate the retention ratio.

Calculate the payout ratio and its implications on the firm’s dividends policy.

Analyze and calculate the internal growth rate for a firm.

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Definitions:

Heterosexual

A sexual orientation characterized by a romantic or sexual attraction to members of the opposite sex.

Homosexual

Pertaining to a sexual orientation characterized by romantic or sexual attraction to individuals of the same sex.

Testosterone

A hormonal steroid crucial for the growth of male reproductive organs and secondary male traits.

Estrogen

A group of steroid hormones that play a critical role in the regulation of sexual and reproductive development, primarily in females.