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Your firm expects sales of $672,500 next year. The profit margin is 4.6 percent and the firm has a dividend payout ratio of 15 percent. What is the projected increase in retained earnings

Respuesta :

ayfat23

Answer:

$26,294.8

Explanation:

Total expects sales at Next years = $672,500

The profit margin =4.6 percent

For the profit margin of expects sales at Next years= (4.6/100 ×$672,500)

= $30,935

dividend payout ratio =15 percent

distributed dividends= (15/100× $30,935)

= $26,294.75

the projected increase in retained earnings= difference between the profit margin of expects sales at Next years and distributed dividends

= ($30,935 - $4,640.25)

= $26,294.8