The 2009 balance sheet of Maria's Tennis Shop, Inc., showed $730,000 in the common stock account and $6.2 million in the additional paid-in surplus account. The 2010 balance sheet showed $775,000 and $6.9 million in the same two accounts, respectively. If the company paid out $400,000 in cash dividends during 2010, what was the cash flow to stockholders for the year?
Answer to relevant QuestionsIf Alexander, Inc., has an equity multiplier of 2.50, total asset turnover of 1.15, and a profit margin of 6.4 percent, what is its ROE? In addition to common-size financial statements, common-base year financial statements are often used. Common-base year financial statements are constructed by dividing the current year account value by the base year account ...Redo Problem 21 using sales growth rates of 15 and 25 percent in addition to 20 percent. Illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the relationship between them. If the SGS Corp. has a 13 percent ROE and a 25 percent payout ratio, what is its sustainable growth rate? Compute the future value of $2,500 compounded annually for a. 10 years at 6 percent b. 10 years at 8 percent c. 20 years at 6 percent d. Why is the interest earned in part (c) not twice the amount earned in part (a)?
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