1. HUD, Co. had a beginning retained earnings of $29,630. For the year, the company had net income of $6,365 and paid dividends of $2,455. The company also issued $4,305 in new stock during the year. What is the ending retained earnings balance?
2. You determined that the net present value of a potential capital investment project is $(742) when the WACC is 10.5%. This means...
a) the project should be accepted.
b) the project should not be pursued.
c) the IRR will be greater than 10.5%.