A company reports the following: Net income...........................................$1,000,000 Preferred dividends.......................................50,000 Average stockholders' equity........................6,250,000 Average common stockholders' equity.............3,800,000 Determine
Question:
A company reports the following:
Net income...........................................$1,000,000
Preferred dividends.......................................50,000
Average stockholders' equity........................6,250,000
Average common stockholders' equity.............3,800,000
Determine
(a) The return on stockholders' equity
(b) The return on common stockholders' equity. Round percentages to one decimal place.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
a Return on Stockholders Equity Net Income Average S...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Question Posted:
Students also viewed these Cost Accounting questions
-
A company reports the following: Net income $120,000 Preferred dividends 20,000 Average stockholders equity 600,000 Average common stockholders equity 500,000 Determine (a) The rate earned on...
-
A company reports the following: Net income $ 180,000 Preferred dividends 12,000 Average stockholders equity 1,200,000 Average common stockholders equity 800,000 Determine (a) The rate earned on...
-
A company reports the following: Net income $140,000 Preferred dividends $20,000 Share of common stock outstanding 60,000 Market price per share of common stock $50.00 (a) Determine the companys...
-
In a closed economy, prices are constant/fixed. Behaviour is characterised by the following relationships. C=0.9375 (Y-T), T=10 and I=50-250i Money demand Md=Y-100i The supply of money and government...
-
Using Wikipedia (www.wikipedia.com.), look up the entry for the Sarbanes-Oxley Act. Look over the table of contents and find the section that describes Section 404. What does Section 404 require of...
-
Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2015, appears below. December 31 is the companys fiscal...
-
What are some of the advantages to using social media tools in the recruitment process?
-
The following is the unadjusted trial balance for Rainbow Lodge Ltd. at its year end, May 31, 2015. The company adjusts its accounts monthly. Additional information: 1. An annual insurance policy was...
-
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year - end is December 3 1 . The unadjusted trial balance as of December 3 1 , 2 0 2 4...
-
BOOTS, Inc., recently completed work on a 1 year, $10 million contract for technical support services awarded by the US Army. The contract included a small business subcontracting plan, and it also...
-
A company reports the following: Net income........................................$ 375,000 Preferred dividends.................................75,000 Average stockholders'...
-
The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Temporary investments.........................$44,000..................$40,000...
-
What is the direction of the satellites average acceleration for one half of an orbit, starting at C and ending at A? A satellite in orbit travels around Earth in uniform circular motion. In the...
-
Unger Petroleum Company incurred the following costs during 2018: REQUIRED: Prepare journal entries for the above transactions using the full cost method of accounting. February 3 Cost of G&G...
-
Fill in the blanks: The amount of petroleum in place is subdivided between that quantity which, on any given date, is deemed to be commercial or economic (i.e., where the estimated selling price...
-
Which do you believe is most important for a companys competitive advantage: internal consistency or market competitiveness? Explain your answer.
-
After completing the job analysis, your boss has asked you to conduct a job evaluation of the various positions in the company. Detail the steps you would take in accomplishing this task.
-
Why must a job analysis be reliable and valid? What can a compensation professional do to ensure that a job analysis is reliable and valid?
-
A compound microscope has objective and eyepiece focal lengths of 6.1 mm and 1.7 cm, respectively. If the lenses are 8.3cm apart, what is the instruments magnification?
-
1. Following are information about Alhadaf Co. Cost incurred Inventory Purchases Sales Adverting expense Salary Expense Depreciation Beginning Inventory Ending Inventory Amount 118,000 350.000 90,000...
-
On June 1, 2014, Ellie Hopkins established an interior decorating business, First-Class Designs. During the month, Ellie completed the following transactions related to the business: June 1. Ellie...
-
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2014, is shown below. The following business transactions were completed...
-
The Colby Group has the following unadjusted trial balance as of August 31, 2014. The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial...
-
In the Queries section of the Navigation Pane, right-click Stone Mountain Patients to select it and display the shortcut menu. 3. Click Copy on the shortcut menu. 4. Right-click the empty area near...
-
What is 'audit risk', and discuss/analyze the components of audit risk. b. List the four (4) things involved in the initial audit planning and which should be done early in the audit.
-
K Internal control is a plan of organization and a system of procedures, implemented by company. A. external auditors; management B. external auditors; board of directors OC. internal auditors;...
Study smarter with the SolutionInn App