Compute it's return on equity for this financial accounting question ABC Technologies reports a net income for 2022 of $3,750 million.Its stockholders' equity is $7,200 million and $7,800 million for 2021and 2022, respectively. Compute its return on equity for 2022.

Step 1: Define Return on Equity (ROE)Return on Equity (ROE) measures a company's profitability by…

Answered: ABC Technologies reports a net income…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 67BE

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Subject: financial accounting
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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 $ 793 2,428 2019 $1,021 1,935 $2,956 2018 $ 883 1,734 $2,617 Current assets Other assets Total assets $3,221 Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $2,956 $ 742 942 933 Total liabilities and stockholders' equity $2,617 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2819 (in millions) 2020 2019 Income statement data: Sales $3,965 311 99 236 $2,928 325 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid 231 48.2 S 53.8 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on ecuity for 2020 and 2019. c. Calculate working capital and the current ratio for…
Assume that today is December 31, 2021. Use the following information that applies to Harrison Corporation to calculate what should be the company’s stock price today. After-tax operating income [EBIT (1 – T)] for 2022 is expected to be $850 million The depreciation expense for 2022 is expected to be $110 million The capital expenditures for 2022 are expected to be $650 million No change is expected in net working capital The free cash flow is expected to grow at a constant rate of 5.5% per year The required return on equity is 10% The WACC is 8% The firm has $150 million of non-operating assets The market value of the company’s debt is $3.25 billion 250 million shares of stock are outstanding Using the corporate valuation model approach, what should be the company’s stock price today?
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ABC Technologies reports a net income for 2022 of $3,750 million. Its stockholders' equity is $7,200 million and $7,800 million for 2021 and 2022, respectively. Compute its return on equity for 2022.