A company reports the following: Net income ............ $115,000 Preferred dividends ......... 10,000 Average stockholders equity ......
Question:
A company reports the following:
Net income ............ $115,000
Preferred dividends ......... 10,000
Average stockholders’ equity ...... 850,000
Average common stockholders’ equity . 750,000
Determine
(a) The rate earned on stockholders’ equity and
(b) The rate earned on common stockholders’ equity.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (14 reviews)
a Rate Earned on Stockholders Equity Net IncomeAverage Stockholders Equity Rate ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Question Posted:
Students also viewed these Managerial Accounting questions
-
A company reports the following information from its financial statements: Required Conduct horizontal and vertical analyses of inventory for the current year. Round percentages to one decimal point...
-
A company reports the following for accounts receivable: Required For each year, determine the company's total or gross accounts receivable, net realizable value of accounts receivable, and allowance...
-
A company reports the following at its December 31 fiscal year-end: Net income .................................................$1,830,000 Preferred dividends .......................................$...
-
1. You are required to compare the results of your printed reports and the results of reports of the MYOB assignment book in your MYOB assignment. If it is assumed that two results of the reports are...
-
Condensed balance sheet and income statement data for Danke Corporation are presented as follows. Instructions Compute these values and ratios for 2016 and 2017. (a) Earnings per share. (b) Working...
-
Zimt AG uses the FIFO method, and Nutmeg Inc. uses the LIFO method. Compared to the cost of replacing the inventory, during periods of rising prices the ending inventory balance reported by: A. Zimt...
-
Report writing is very time-consuming. What should be added to a trending database to quickly interrogate vibration data yet yield a quality report?
-
Four GRRLs Partnership is owned by four girlfriends. Lacy holds a 40% interest; each of the others owns 20%. Lacy sells investment property to the partnership for its fair market value of $200,000...
-
This course is UNDC201, it includes concepts, definitions, legal provisions, different types and methods as well as markets for organized criminal activities of organized criminal groups....
-
The following scenarios present a set of ethical dilemmas that might arise in marketing research. Your assignment is to decide what action to take in each instance. You should be prepared to justify...
-
A company reports the following: Net income ............ $ 225,000 Preferred dividends ........... 20,000 Average stockholders equity ...... 1,750,000 Average common stockholders equity . 1,000,000...
-
A company reports the following: Net income ............. $115,000 Preferred dividends .......... $15,000 Shares of common stock outstanding ... 20,000 Market price per share of common stock . $65.00...
-
_______ is a systematic approach to dealing with change both from organizational and individual perspectives. Change management Organizational culture Pragmatic culture Organizational change
-
Over the years, AstraZeneca Plc (AstraZeneca) has developed a strong reputation for its expatriate management practices. Expatriate management at AstraZeneca went beyond tackling issues such as...
-
You are planning on making a $100,000 investment today from a trust fund, with the expectation of receiving the following cash flows: $20,000, $30,000, $50,000, $40,000, and $10,000. If your cash...
-
Define each of the following terms: a. Synergy; merger b. Horizontal merger; vertical merger; congeneric merger; conglomerate merger c. Friendly merger; hostile merger; defensive merger; tender...
-
Which of the following types of epigenetic changes may promote cancer? a. DNA methylation b. Covalent modification of histones c. Chromatin remodeling d. All of the above may promote cancer.
-
Calculate net investment and gross investment during 2017. An economys capital stock was $46.3 billion at the end of 2016, $46.6 billion at the end of 2017, and $47.0 billion at the end of 2018....
-
a. Brian said, We simply must have a bigger budget to start this project. b. Brian said We simply must have a bigger budget to start this project. Choose the correctly punctuated item.
-
Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 11.4 percent and the risk-free.rate is 3.3 percent. The company is currently considering a project that will cost...
-
Suppose that \(\mathbf{F}\) is defined on \(\mathbf{R}^{3}\) and that \(\oint_{C} \mathbf{F} \cdot d \mathbf{r}=0\) for all closed paths \(C\) in \(\mathbf{R}^{3}\). Prove: (a) \(\mathbf{F}\) is path...
-
Wool ford Inc. declared a cash dividend of $1.00 per share on its 2 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August...
-
Cole Inc. owns shares of Marlin Corporation stock classified as available-for-sale securities. At December 31, 2010, the available-for-sale securities were carried in Coles accounting records at...
-
Graves Mining Company declared, on April 20, a dividend of $500,000 payable on June 1. Of this amount, $125,000 is a return of capital. Prepare the April 20 and June 1 entries for Graves.
-
Individual Retirement Account (IRA) Bonds Mutual fund Stocks Futures Defined contribution plans What is it? Level of Risk and Potential Return Minimum investment? Easy to start or stop?
-
1. A company purchased machinery in 2015 for $400,000. Its value in 2018 was $320,000. Assuming the resale value decreases exponentially, what will the value be in 2020? As a part of your solution,...
-
ROA of a company is 8.57%, Total assets end of the year of 2021 are $9.6 million, ROE is 14% and Profit margin of 19.9% what is the firms value of net income? and what is stockholders equity?
Study smarter with the SolutionInn App