Oriole Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 43,600 shares outstanding the...
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Oriole Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 43,600 shares outstanding the entire year. It has a return on assets of 10%. During 2016, it had net income of $111,000. On January 1, 2017, it issued $409,000 in debt at 4% and immediately repurchased 21,800 shares for $409,000. Management expected that, had it not issued the debt, it would have had net income of $111,000 in 2017. Determine the company's net income and earnings per share for 2016 and 2017. (Ignore taxes in your computations.) (Round earnings per share to 2 decimal places, e.g. $2.66.) Net income $ Earnings per share $ 2016 $ Return on common stockholders' equity $ Compute the company's return on common stockholders' equity for 2016 and 2017. (Round answers to O decimal places, e.g. 15%) 2017 2016 % 2017 % Compute the company's debt to assets ratio for 2016 and 2017. (Round answers to O decimal places, e.g. 15%) Debt to assets ratio 2016 % 2017 % Oriole Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 43,600 shares outstanding the entire year. It has a return on assets of 10%. During 2016, it had net income of $111,000. On January 1, 2017, it issued $409,000 in debt at 4% and immediately repurchased 21,800 shares for $409,000. Management expected that, had it not issued the debt, it would have had net income of $111,000 in 2017. Determine the company's net income and earnings per share for 2016 and 2017. (Ignore taxes in your computations.) (Round earnings per share to 2 decimal places, e.g. $2.66.) Net income $ Earnings per share $ 2016 $ Return on common stockholders' equity $ Compute the company's return on common stockholders' equity for 2016 and 2017. (Round answers to O decimal places, e.g. 15%) 2017 2016 % 2017 % Compute the company's debt to assets ratio for 2016 and 2017. (Round answers to O decimal places, e.g. 15%) Debt to assets ratio 2016 % 2017 %
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Determine the companys net income and earnings per share for 2016 and 2017 2016 2017 Calculation amo... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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