Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment 8 years from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Smashed Pumpkins Co. paid $152 in dividends and $582 in interest over the past year. The company increased retained earnings by $486 and had accounts payable of $618. Sales for the year were $16,335 and depreciation was $728. The tax rate was 38 percent. What was the company's EBIT?
Roger has just lost a lawsuit and has agreed to make equal annual payments of $18,300 for the next 5 years with the first payment due today. The value of this liability today is $77,000. What is the interest rate on the payments?
Use the following information to answer this question.
Windswept, Inc.
2017 Income Statement
($ in millions)
Net sales $ 10,500
Cost of goods sold 7,950
Depreciation 370
Earnings before interest and taxes $ 2,180
Interest paid 100
Taxable income $ 2,080
Taxes 624
Net income $ 1,456
Windswept, Inc.
2016 and 2017 Balance Sheet
($ in millions)
2016 2017 2016 2017
Cash $ 370 $ 390 Accounts payable $ 1,910 $ 1,800
Accounts rec. 1,110 1,010 Long-term debt 1,070 1,530
Inventory 1,880 1,770 Common stock 3,360 3,140
Total $ 3,360 $ 3,170 Retained earnings 650 900
Net fixed assets 3,630 4,200
Total assets $ 6,990 $ 7,370 Total liab. & equity $ 6,990 $ 7,370
What were the total dividends paid for 2017?