Statement of Retained Earnings Tricyci·Cop, began the year 2008 with $2Silon in

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Statement of Retained Earnings Tricyci·Cop, began the year 2008 with $2Silon in ared eamngs. The firm earned net income of 7 million in 2008 and paid $1 milion to its preferred stockholders and $3 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TricCydle? O 1) $25 million O 2) 52million O 3) 532 million O 4) 536 milion Save Question 33 (2 points) Debt Management Ratios You are considering a stock investment in one of two fiems (Lotsofdebt, Inc. and LotsofEquity Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $100 million in assets with $90 milion in debt and $10 milion in equity. LotsofEquity, Inc. finances its s100 milion in assets with $10 million in debt and $90 million equity. What are the debt ratio, equity multiplier, and-to ty rate fr the firms, O 1) LotsorDeer: 90%. 10 times, 9 times, respeavey; and utit 10%, 1.11 times, .1111 tres, respectively. 2) LotsofDebt: 10%, 1.11 times, .1111 respectively, and Lotsoftquty: 90%, 10 times, 9 times, respectively. O 3) LotsofDett 90%, 1.11 times, .1111 imes, respectve .nd Latsoftguty: 10%, 10 times, 9 times, respectively. 4) LtsfDett 10%, 10 times, 9 times, respetively;·nd Lot foty: 90%, 1.11 times, .1 111 times, respectively. Save Question 34 (2 points) Income Statement Banyard, Inc.'s 2010 income statement lists the folowing income and expenses: EBIT $500,000, Interest expense $45,000, and Taxes $152,000. Baryard's has no preferred stock outstanding and 200,000 shares of common stock outstanding. What are its 2010 earnings per share 1) $2.50 O 2) $2.27s O 3) S1.74 O 4 $1.515 Question 35 (2 points) A stock investor deposited $3,450 six years ago Today the account is valued at s2,180. What annual rate of return has this nvestor earned? O 1) 7.95% O 2)-7.37% 3) 10.26% O 4)-9.74% Save Question 36 (2 points) Which of the folowing statements is correct? O 1) Sole proprietorships are easy to start O 2) If the sole proprietorship gets sued, the owner is ot ble O 3) It is relatively easy for sole proprietorships to raise money

Explanation / Answer

Opening balance of retained earnings $         25,000,000 Add: Net income $           7,000,000 Less: Preference dividends $           1,000,000 Less: Common dividends $           3,000,000 Year end retained earnings $         28,000,000

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