Apex Fusion Inc. had total common equity of $480,000 at the end of last year. Its net income after taxes was $72,000. What was Apex's Return on Equity (ROE)? A. 13.75% B. 15.00% C. 14.20% D. 16.50% E. 12.90%

Apex Fusion Inc. had total common equity of $480,000 at the end of last year. Its net income after taxes was $72,000. What was Apex's Return on Equity (ROE)? A. 13.75% B. 15.00% C. 14.20% D. 16.50% E. 12.90%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Related questions

Q: None

A: Step 1: Definition of Underfunded Projected Benefit Obligation (PBO)An underfunded projected benefit…

Q: Accounting?

A: Step 1: Definition of Work-in-Process (WIP) CostWork-in-Process (WIP) cost refers to the cost of…

Q: Want Answer

A: Concept of Operating ActivitiesOperating activities are the day-to-day functions of a business that…

Q: Tamarisk Motor Company manufactures automobiles. During September 2025, the company purchased 6,000…

A: Given Data:Total headlamps purchased = 6,000Cost per lamp = $10Headlamps used for sales staff =…

Q: What is the correct option ? General accounting question

A: Step 1: Define Gross ProfitGross Profit is calculated as the difference between Net Sales and Cost…

Q: What I its total assets turnover

A: Step 1:Definition of Total Asset TurnoverTotal Asset Turnover measures the efficiency of a company's…

Q: Mountain view book has provided the following data general accounting for the month

A: Step 1: Definition of Cost of Goods Sold (COGS)COGS is the direct cost attributable to the…

Q: General Accounting

A: Concept of Market Value of EquityMarket value of equity, also known as market capitalization, is the…

Q: Compute the contribution margin ratio

A: Explanation of Contribution Margin: Contribution margin represents the portion of each sales dollar…

Q: Calculate the depreciation expense for the

A: Concept of Asset Cost:The asset cost refers to the total amount paid to acquire a fixed asset,…

Q: Help

A: let's look at the options:a) Process effectiveness indicators complement cost measuresThis is the…

Q: what is the full cost per unit?

A: Step 1: Definition of Full Cost per UnitThe full cost per unit includes all costs associated with…

Q: Financial Accounting MCQ

A: To determine whether Phoenix Industries should invest or repurchase shares, we compare the expected…

Q: What is the depreciation expense for 2022

A: Concept of Cost of the Asset:The cost of the asset refers to the total amount paid to acquire it and…

Q: What is the correct answer with accounting question

A: Step 1: Definition of EPS and P/E RatioEarnings Per Share (EPS) is the portion of a company's net…

Q: Part C accounting

A: The ageing schedule indicates total estimated uncollectible allowance = $31,200Unadjusted balance =…

Q: A wholesale company has the following figures

A: Step 1: Definition of Net Profit MarginNet Profit Margin measures how much of each dollar of sales a…

Q: General accounting question

A: Step 1: Definition of Weighted-Average Inventory MethodThe weighted-average inventory method…

Q: Please give me answer accounting

A: Step 1: Definition of Stockholders' EquityStockholders' Equity represents the residual interest in…

Q: Subject: general accounting

A: Explanation of Asset Turnover Ratio: Asset turnover ratio is a financial efficiency metric that…

Q: I want to this question answer for General accounting question not need ai solution

A: Step 1: Define Gross and Net IncomeGross Income: The total earnings before any deductions (taxes,…

Q: None

A: Step 1: Definition of Weighted-Average Inventory MethodThe Weighted-Average Inventory Method…

Q: Alina’s Catering has a monthly target operating income of $16,000. Variable expenses are 40% of…

A: Operating Leverage Factor:The operating leverage factor measures the sensitivity of a company's…

Q: Calculate the variable overhead rate

A: Explanation of Variable Overhead Costs:Variable overhead costs are indirect manufacturing costs that…

Q: What amount will Hocco Corporation recorded as the acquisition cost of the land

A: Step 1: Definition of Acquisition Cost of LandThe acquisition cost of land includes all expenditures…

Q: margin ratio is? Accounting question

A: Step 1: Definition of Contribution Margin and Contribution Margin RatioContribution Margin is the…

Q: Harper Manufacturing produces a special type of polymer used in medical devices. In 2022, the first…

A: Net Income is calculated as below:Formula:

Q: What is the contribution margin ratio of this financial accounting question?

A: Step 1: Define Contribution Margin RatioContribution Margin Ratio is the percentage of sales revenue…

Q: Analysts are projecting that Capital Railways will have earnings per share of $4.20. If the average…

A: To find the current price of Capital Railways' stock, we use the Price-to-Earnings (P/E) ratio…

Q: What amount will she have to pay?

A: To calculate how much Hannah Brooks will have to pay in taxes for her travel allowance, follow these…

Q: provide correct answer

A: Step 1: Definition of Maturity ValueMaturity value is the total amount to be paid at the end of a…

Q: Hii teacher please given answer general accounting question

A: To solve this problem, we use the Capital Asset Pricing Model (CAPM) formula: r=rf+β(rm−rf) where:r…

Q: Alina’s Catering has a monthly target operating income of $16,000. Variable expenses are 40% of…

A: Step 1: DefinitionsOperating Income:Operating Income is the profit a company earns from its core…

Q: Financial accounting

A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio is a valuation metric…

Q: Calculate cash conversion cycle

A: To calculate the Cash Conversion Cycle (CCC), we use the formula: CCC=Days Inventory Outstanding…

Q: Oriole Co. has the following transactions related to notes receivable during the last 2 months of…

A: November 1: Loan to C. BohrOriole Co. loaned cash, so their cash account decreases.They received a…

Q: answer ?? General accounting question

A: Step 1: Define Earnings Per Share (EPS)Earnings Per Share (EPS) measures the portion of a company's…

Q: Explain properly all the answer general accounting question

A: Step 1: Define Net IncomeNet Income is the amount remaining after deducting income tax expenses from…

Q: The market price per share of a stock is $45.00, and the earnings per share (EPS) is $1.80. What is…

A: The price-earnings (P/E) ratio is calculated using the formula: P/E=Market Price per Share/Earnings…

Q: what are the required sales?

A: Step 1: Definition of Required SalesRequired Sales refers to the level of sales a business must…

Q: Need answer

A: Explanation of Finished Goods Inventory:Finished goods inventory represents the value of completed…

Q: hello teacher please solve question

A: Step 1: Definition of Units Transferred to Finished Goods (Process Costing)In a process costing…

Q: Calculate the variable overhead rate

A: Variable Overhead Spending Variance:The variable overhead spending variance is the difference…

Q: cost accounting

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a profitability ratio that…

Q: none

A: The Equity Multiplier (EM) is calculated using the formula: Equity Multiplier=1/(1−Debt Ratio) Given…

Q: Net income

A: Let's calculate the Net Income step by step. Given Data:Debt/Equity Ratio = 0.85Return on Assets…

Q: Bright Electronics has a Computer Division with the following financial details: • Sales: $250,000 •…

A: AnswersOperating Income: $80,000Return on Investment (ROI): 6.67%Residual Income (RI):…

Q: Get correct answer this financial accounting question not use ai please don't

A: Step 1: Analysis of information givenNumber of Employees in Division X = 45Number of Employees in…

Q: Summit Holdings has $280,000 in accounts receivable that will be collected within 70 days. The…

A: Given Data:Investment (Initial Amount Paid) = $260,000Total Collected Amount = $275,000Time Period =…

Q: correct answer please

A: Step 1: Note payable is a liability which is signed for purchase of some assets on credit or taken…

Question

What was Apex's return on equity of this financial accounting question?

Apex Fusion Inc. had total common equity of $480,000 at the end of last year.
Its net income after taxes was $72,000.
What was Apex's Return on Equity (ROE)?
A. 13.75%
B. 15.00%
C. 14.20%
D. 16.50%
E. 12.90%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Albion Inc. provided the following information for its most recent year of operations. The tax rate is 40%. Required: 1. Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
ROE ?
Nikko Electronics, Inc. Had total common equity of... Please answer the financial accounting
What was its ROE?
Zero Corp's total common equity at the end of last year was $350,000 and its net income was $70,000. What was its ROE? a. 19.40% b.24.20% O c. 17.00% d. 17.40% e. 20.00%
What was it's ROE ? General accounting