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(d) Calculate the payout ratio and return on common stockholders' equity. (Round answers to 1 decimal place, eg. 12.5%) Payout ratio Return on common stockholders' equity %

(d) Calculate the payout ratio and return on common stockholders' equity. (Round answers to 1 decimal place, eg. 12.5%) Payout ratio Return on common stockholders' equity %

FINANCIAL ACCOUNTING
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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On January 1, 2025, Flounder Corp. had these stockholders' equity accounts. Common Stock ($10 par value, 67,500 shares issued and outstanding) Paid-in Capital in Excess of Par Retained Earnings During the year, the following transactions occurred. Jan. Feb. 15 Apr. 15 15 $675,000 482,500 625,000 May 15 Dec. 1 Declared a $0.60 cash dividend per share to stockholders of record on January 31, payable February 15. Paid the dividend declared in January. Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $12 per share. Issued the shares for the stock dividend. Declared a $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2026. Dec. 31 Determined that net income for the year was $355,000.
Transcribed Image Text:On January 1, 2025, Flounder Corp. had these stockholders' equity accounts. Common Stock ($10 par value, 67,500 shares issued and outstanding) Paid-in Capital in Excess of Par Retained Earnings During the year, the following transactions occurred. Jan. Feb. 15 Apr. 15 15 $675,000 482,500 625,000 May 15 Dec. 1 Declared a $0.60 cash dividend per share to stockholders of record on January 31, payable February 15. Paid the dividend declared in January. Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $12 per share. Issued the shares for the stock dividend. Declared a $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2026. Dec. 31 Determined that net income for the year was $355,000.
(d) Stockholders' Equity Payout ratio Paid-in Capital Capital Stock Common Stock Additional Paid-in Capital Total Paid-in Capital Paid-in Capital in Excess of Par-Common Stock Retained Earnings Total Stockholders' Equity FLOUNDER CORP. Partial Balance Sheet December 31, 2025 Return on common stockholders' equity % 742500 % THEY 496000 Calculate the payout ratio and return on common stockholders' equity. (Round answers to 1 decimal place, e.g. 12.5%) 1238500 806525 2045025
Transcribed Image Text:(d) Stockholders' Equity Payout ratio Paid-in Capital Capital Stock Common Stock Additional Paid-in Capital Total Paid-in Capital Paid-in Capital in Excess of Par-Common Stock Retained Earnings Total Stockholders' Equity FLOUNDER CORP. Partial Balance Sheet December 31, 2025 Return on common stockholders' equity % 742500 % THEY 496000 Calculate the payout ratio and return on common stockholders' equity. (Round answers to 1 decimal place, e.g. 12.5%) 1238500 806525 2045025
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