Calculation of Dividend per Share and Retention Ratio

Calculation of Dividend per Share and Retention Ratio

ByHomework Help Classof1

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"a) A for-profit hospital earns a gross profit of $10 million. Twenty-five percent (25%) of this gross profit is retained earnings and another 30% is charged to corporate tax. If there are two 25% preferred shareholders and ten 10% ordinary shareholders, how much will each shareholder earn as dividend? b) If each preferred shareholder pays an income tax of 33.33% on their dividend income, what will be their net dividend earning? c) What is the retention ratio? "

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Publication Date
Jun 6, 2013
Language
English
Category
Education & Language
Copyright
All Rights Reserved - Standard Copyright License
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By (author): Homework Help Classof1

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PDF

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