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Q: If a firm with an asset base of 3 million recently added 150000 thousand to retained earnings after a dividend payment of 100000 thousand then what is its internal growth rate?
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Related questions

How is retained earnings calculated?

1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit


Formulla for retained earnings?

retained earnings=profit after tax- dividend distribution


How do you calculate retained earningdefinitionformula?

Definition: Retained earnings is that part of net income which is not available to distribute to shareholders in the form of dividend. Formula: Retained earnings = net income - dividend


Does net income for the period equal retained earnings for the same period?

If company has the policy to not distribute profit as a dividend then retained earnings will be equal to net income otherwise dividend and retained earnings will be equal to net income.


Is retained earnings an asset?

No, retained earnings comes after Net Income on the Income Statement. The retained earnings is less than the Net Income if a dividend is paid out.


Does payment of dividends reduce stockholders equity?

Answer:Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not pay out as a dividend (hence: "retained"). Retained earnings therefore increases with earnings, but decreases with dividends, since dividend is a distribution of earnings to the shareholders.


A policy of dividend smoothing refers to?

setting a dividend price that does not necessarily conform with retained earnings


What does accumulated earnings mean?

The definition of accumulated earnings is the sum of the profits of a company after dividend payments since the inception of the company. Accumulated earnings are also called earned surplus, retained earnings, or retained capital.


What is the difference between appropriated and unappropriated retained earnings?

Net earning of the firms, included retained earning, dividend etc.


What account is debited when a stock dividend is declared and distributed on the same date?

Retained earnings


Is dividend paid an expense in income statement?

No a dividend is not an expense. It is generally a reduction of retained earnings in the equity section of the balance sheet.


Is it true that when the board of directors declares a cash or stock dividend this action decreases retained earnings?

yes it is..