Makarand invests some amount and losses 10%in the first year but in the next year, he gains 20% of what he had at the end of first year. If there is an increase of rupees 1,440 in his capital at the end of two years,find his original capital.
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Expenses from previous years are also irrelevant. To recap, relevant costs are the future costs that will differ among alternatives. You might use the past costs to help you predict those future costs, but the past costs are otherwise irrelevant to the decision.
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Company board may decide to pay dividends from Retained Earnings, which is always legal. In some regions, it is also legal to pay dividends from the excess of par value(value per share assigned in the corporate charter). Board of directors may decide on the amount of dividend payments.
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