1. Assume that a firm’s book value at the beginning of the year is $17,800 and that the firm reports net income of $6,200. If the firm’s book value at the end of the year is $20,000 what was the amount of dividends paid during the year.
2. Assume that a firm’s book value at the beginning of the year is $12,500 and that the firm reports net income of $3,200 and pays dividends of $1,100. What will the firm’s book value at the end of the year