Question: Compute the missing amounts in the following table. (The balance in retained earnings at year-end 2006 was $2.2.) Comment on the firms performance over the
Compute the missing amounts in the following table. (The balance in retained earnings at year-end 2006 was $2.2.) Comment on the firms performance over the three year period after calculating the level of expenses as a percentage of total revenues and net income as a percentage of total revenues. What advice would you give to this company in regards to its dividend policy?
|
| 2004 |
| 2005 |
| 2006 |
|
|
|
|
|
|
|
| Retained earnings (beginning) | $1.2 |
| $2.0 |
| ? |
| Revenues | 8.8 |
| 11.8 |
| 11.8 |
| Expenses | 7.4 |
| ? |
| 11.0 |
| Dividends declared | ? |
| .6 |
| .6 |
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