A corporation exercises control over an affiliate in which it holds a 25 percent common stock interest. If its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor? a. Decrease book value per share b.Increase several turnover ratios c.Result in increased earnings per share d.Result in an increased current ratio

A corporation exercises control over an affiliate in which it holds a 25 percent common stock interest. If its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor? a. Decrease book value per share b.Increase several turnover ratios c.Result in increased earnings per share d.Result in an increased current ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ee.65.
A corporation is authorized to issue both ordinary and cumulative, non- participating preference shares. It declared a cash dividend this year; No dividends had been declared for the previous two years prior to this year's declaration. The total dividends declared is large enough to distribute dividends for this year and the previous two years. Which of the following statements is CORRECT? Only preference shareholders should receive dividends-in-arrears. O Both preference and ordinary shareholders should receive dividends-in-arrears. O Only ordinary shareholders should receive dividends-in-arrears. O Neither preference nor ordinary shareholders should receive dividends-in-arrears.
What is the net increase or (net decrease) in the identifiable assets of SD Corporation?a. 13,700,500b. 13,307,500c. 13,957,500d. 13,050,500
a. What is the Effective Annual Rate (EAR) and what is its purpose? b. The value of a share of common stock in a corporation is directly related to the general rights of shareholders, particularly as it applies to the right to vote for directors. Discuss at least four (4) additional rights that common shareholders have.
A corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained earnings account at the beginning of the current fiscal year. Although net income for the current year is sufficient to pay the preferred dividend of $150,000 each quarter and a common dividend of $90,000 each quarter, the board of directors declares dividends only on the preferred stock. Suggest possible reasons for passing the dividends on the common stock.
Lake Incorporated and River Incorporated reported net incomes of $275,000 and $231,000, respectively, for the most recent fiscal year. Both companies had 55,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $58, while River's sold for $62 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Company Lake, Incorporated River, Incorporated P/E Ratio
1. When a corporation has only one class of share capital, book value per share is computed as: A. Total contributed capital over the total number of shares issued B. Total shareholder's equity over the total number of shares outstanding. C. Total shareholder's equity over the total number of shares issued. D. Total contributed capital over the total number of shares outstanding
How to find the outstanding comon shares? This statement is correct. The per-share book value is calculated by dividing the company’s total common equity by the number of outstanding shares of common stock. The book value per share of Blue Hamster Manufacturing Inc.’s stock is the accounting value of assets that the company’s common shareholders would receive if the company was liquidated. It is listed as total common equity on the balance sheet (total assets minus total debt) and is calculated by dividing the value of total common equity by the outstanding shares. In this case, $32,813 million / 50 million shares = $656.26 per share.
See Attached 5.27 with Dividened Reduction Table
If a corporation fails to declare a dividend on cumulative preferred stock in a given year, the dividends in arrears accumulate from period to period. the dividends in arrears are recorded as liabilities. the common shareholders may still receive dividends in the current year. all of these options apply.
A corporation using the equity method of accounting for its investment in a 40% owned investee,which earned $20,000 and paid $5,000 in dividends ,the debit side of recording the income from subsidiary will be Select one: a. no entry b. investment c. income d. cash
At the beginning of the current year , Flash Company had retained earnings of P4,000,000 . During the year , the entity reported net income of P2,000,000 , sold treasury shares at a " gain " of P720,000 , declared a cash dividend of P1,200,000 , and declared and issued a small share dividend of 60,000 shares with P10 par value when the fair value of the share was P20 . What is the amount of retained earnings available for dividends at the end of the current year ? a. 3,600,000 b. 4,200,000 c. 4,320,000 d. 4,920,000