Lena company has provided the following data (gnore income taxes); 2016 revenues were $77,000. 2016 expenses were $48,600. dividends declared and paid during 2016 totaled $7,700. total assets at december 31, 2016 were $185,000. total liabilities at december 31, 2016 were $105,000. common stock at december 31, 2016 was $27,000. which of the following is correct? a. 2016 net income was $20,700 b. retained earnings at december 31, 2016 were $20.700. c. total stockholders' equity at december 31, 2016 was $244.000. d. retained earnings at december 31, 2016 were $53,000.

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u.s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

What two things do you consider when evaluating the time value of money