Question: A & E Holdings profit and loss statement showed a net income of 9 3/4% of revenue or $29 250. Fifteen percent of net income

A & E Holdings’ profit and loss statement showed a net income of 9 3/4% of revenue or $29 250. Fifteen percent of net income was paid in tax and 75% of the net income after tax was paid out as dividends to Alice and Emile, who hold shares in the ratio 5 to 3.
(a) What was the revenue of A & E Holdings?
(b) How much was the after-tax income?
(c) How much was paid out in dividends?
(d) What percent of net income did Alice receive as a dividend?

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a Let revenue be x 9 of x 29 250 00975x 29 250 x 300 000 b Aftertax income 29 2... View full answer

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