Firm L had net assets at the end of the year of $415,000. The only items affecting stockholders' equity during the year were net income of $76,000 and dividends of $46,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Choose Addend: Choose Numerator: + + Average Stockholders' Equity Choose Addend: Return on Equity /Choose Denominator: = Average Stockholders' Equity Average Stockholders' Equity Return on Equity Return on Equity

Firm L had net assets at the end of the year of $415,000. The only items affecting stockholders' equity during the year were net income of $76,000 and dividends of $46,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Choose Addend: Choose Numerator: + + Average Stockholders' Equity Choose Addend: Return on Equity /Choose Denominator: = Average Stockholders' Equity Average Stockholders' Equity Return on Equity Return on Equity

Name: Firm L had net assets at the end of the year of $415,000. The only it
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Description: Firm L had net assets at the end of the year of $415,000. The only items affecting stockholders' equity during the year were netincome of $76,000 and dividends of $46,000.Required:Calculate Firm L's average stockholders' equity and return on equity

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Given the results of the previous income statement calculations, complete the following statements: • In Year 2, if Cold Goose has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. • If Cold Goose has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 2. in Year 1 to • Cold Goose's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2. in Year 1 to • It is to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $3,485,500 and $4,284,812, respectively. This is because of the items reported in the income statement involve payments and receipts of cash.
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(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,314,000. Furthermore, the firm's income statement for the year just ended has a net income of $578,000, which is $0.264 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.81. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $ (Round to the nearest cent.) C...
On October 25, Illinois Company had a market price per share of common stock of $33. For the previous year, it paid an annual dividend of $2.31. What is the dividend yield for Illinois Company? a. 14% b. 7% C. 2% d. None of these choices are correct.
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Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 $129,600 1,000,000 1,500,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator 5.40 8.64 56.70 Denominator ◆ Average stockholders' equity X 8 x Did the return improve? The return on common stockholders' equity decreased X X from the previous year to the current year. ROE % %
At the market close of a recent year, McDonald’s Corporation had a closing stock price of $198.01. In addition, McDonald’s Corporation had a dividend per share of $4.19 during the previous year. Determine McDonald’s Corporation’s dividend yield. Round to one decimal place.fill in the blank 1%
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Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Previous Year Current Year $94,500 1,000,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Did the return improve? The return on common stockholders' equity Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator Denominator $129,600 1,500,000 0 0 5.40 8.64 56.70 ◆ 0 0 from the previous year to the current year. ROE % %
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