Get correct answer general accuonting Beta Corp. had a net income of $45,000 on sales of $600,000. Total assets are$450,000 at the end of the fiscal year. The firm's debt to assets ratio was 40%.What is the return on equity?A. 16.25%B. 16.67%C. 17.50%D. 18.75%

Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial metric that…

Answered: Beta Corp. had a net income of $45,000…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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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 dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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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.)
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Beta Corp. had a net income of $45,000 on sales of $600,000. Total assets are $450,000 at the end of the fiscal year. The firm's debt to assets ratio was 40%. What is the return on equity? A. 16.25% B. 16.67% C. 17.50% D. 18.75%