You are watching: Which of the following companies has the highest return on common stockholders’ equity?
Rerotate on stockholders" equity is calculated by separating net revenue much less wanted dividends by average common stockholders" equity. Total beginning stockholders equity is $10,317,000 while finishing stockholders equity is $10,662,000. This results in average prevalent stockholders" equity of $10,489,500. Dividing $1,393,000 (Net Income less Preferred Dividends) by this number returns a 13.3% rerotate on common stockholders" equity
Which of the adhering to companies has the greatest return on common stockholders" equity? Aa agency with a net income of $45 million, desired dividends of $3 million, and average common stockholders" equity of $547 million Ba agency through a net revenue of $31 million, wanted dividends of $830,000, and also average prevalent stockholders" equity of $412 million Ca agency with a net income of $17 million, desired dividends of $950,000, and average prevalent stockholders" equity of $90 million Da company via a net revenue of $22 million, preferred dividends of $0, and average common stockholders" equity of $280 million
CRerevolve on prevalent stockholders" equity is calculated as (net earnings minus wanted dividends) separated by average prevalent stockholders" equity. Thus, the return on widespread stockholders" equity for the 4 companies is:($45 million - $3 million)/$547 million = 7.7%($22 million - $0)/$280 million = 7.9% ($31 million - $830,000)/$412 million = 7.3%($17 million - $950,000)/$90 million = 17.8%Thus, the company through the greatest return on stockholders" equity is the company via a net income of $17 million
Which of the following providers has actually the highest possible payout ratio? A :a agency via $68 million cash dividends claimed on prevalent stock and also a net income of $205 million B :a firm with $43 million cash dividends asserted on widespread stock and also a net earnings of $164 million C :a company via $29 million cash dividends asserted on common stock and a net earnings of $95 million D :a firm through $37 million cash dividends declared on prevalent stock and a net income of $102 million
DThe payout ratio is calculated as cash dividends claimed on common stock separated by net earnings. Because of this, the payout proportion for each firm is:$37/$102 = 36.3%$43/$164 = 26.2%$29/$95 = 30.5%$68/$205 = 33.2%As such, the agency that asserted $37 million in cash dividends with a net earnings of $102 million has actually the highest payout proportion.
Romine Industries has total stockholders" equity of $4,982,000. Given the following indevelopment, what is the company"s full additional paid-in capital?Common Stock, $3 par (400,000 shares authorized, 358,000 shares issued and also outstanding). Preferred Stock, 4%, $100 par (5,000 shares authorized, issued, and outstanding).Retained Salaries (ending balance): $2,619,000
The total par worth of common and also wanted shares outstanding is $1,574,000 (358,000 x $3) + (5,000 x $100). Adding this amount to the finishing preserved earnings balance returns $4,193,000 in equity before considering any kind of additional paid-in funding, $4,982,000 - 4,193,000 = $789,000
Boring Corporation has one course of $2 par widespread stock. The company has authorized 600,000 shares, issued 500,000 shares, and presently has 480,000 shares outstanding. Additional paid-in capital totals $2,500,000. What amount will Boring report as full paid-in capital?
Total paid-in resources consists of the par worth of stock issued plus any additional phelp in resources (500,000 x $2) + $2,500,000) = $3,500,000.
Determine complete stockholders" equity offered the adhering to information:Usual Stock, $5 par (500,000 shares authorized, 450,000 shares issued, and also 425,000 shares outstanding)Further Paid-in Capital - Typical Stock $1,125,000 Treasury Stock (at cost): $125,000Retained Earnings: $1,948,000
5,198,000Total stockholders" equity is comprised of the par worth of issued shares (450,000 x $5 = $2,250,000), and also additional paid-in resources, and also preserved income. Treasury stock reduces the amount of total stockholders" equity.
Brehm Holdings recently reported a rerotate on widespread stockholders" equity of 11.47%. What was the company"s desired dividends if net revenue was $550,000 in the time of the year, beginning common stockholders" equity was $3,852,000, and finishing widespread stockholders" equity was $3,974,000?
$101,178.90Average common stockholders" equity is $3,913,000 ($3,852,000 + 3,974,000) ÷ 2). Multiplying this amount by 11.47% returns a numerator (net income much less desired dividends) of $448821.10. Subtracting this number from net revenue returns $101,178.90 of preferred dividends
Aucoin Enterprises has actually the complying with quantities pertained to stockholders equity:Typical Stock, $3 par (400,000 shares authorized, 250,000 shares issued, and also 200,000 shares outstanding): $750,0008% Preferred Stock, $150 par, cumulative (10,000 shares authorized and issued): $1,500,000Total added paid-in capital: $2,300,000If the ending retained revenue balance is $4,000,000 and also full stockholders" equity is $8,350,000, what amount will certainly Aucoin report for treasury stock?
Before considering treasury stock, complete stockholders" equity is $8,550,000 (par value of widespread and wanted stock, full additional phelp in capital, and kept earnings). Subtracting the total stockholders" equity amount from this complete yields $200,000 in treasury stock.
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Downtrodden Corporation has actually been suffering constant net losses for the previous 5 years. How does the company report the resulting deficit?
Which of the complying with would be placed under the Capital Stock section of the balance sheet? Select all that apply.