Fondren Machine Tools has total assets of $3,180,000 and current assets of $882,000. It turns over Its fixed assets 1.8 times per year.Its return on sales is 5.5 percent. It has $1,410,000 of debt.What is its return on stockholders' equlty? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2decimal places.)Return on stockholders' equity

Return on stockholder's equity is a financial measurement that shows how much income has been…

Answered: Fondren Machine Tools has total assets…

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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Similar questions

BioScience Inc. will pay a common stock dividend of $5.20 at the end of the year (D1). The required return on common stock (Ke) is 14 percent. The firm has a constant growth rate (g) of 7 percent. Compute the current price of the stock (P0). (Do not round intermediate calculations. Round the answer to 2 decimal places.)
Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of $38,750. What is the company’s return on equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Hank Corp.'s common stock currently sells for $53 per share. The most recent dividend (Do) was $2.48, and the expected growth rate in dividends per year is 7%. The cost of common equity, Re, is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.
ABD common stock is selling for $36.08 a share. The company has earnings per share of S.34 and a book value per share of S12.19. What is the market-to-bok ratio?
Jarett & Sons' common stock currently trades at $38.00 a share. It is expected to pay an annual dividend of $1.75 a share at the end of the year (D1 = $1.75), and the constant growth rate is 6% a year. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. % If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places. %
Suppose Stark Ltd. just issued a dividend of $2.59 per share on its common stock. The company paid dividends of $2.25, $2.34, $2.41, and $2.52 per share in the last four years. a. If the stock currently sells for $70, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What if you use the geometric average growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Ellington Electronics wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $3.70 per share, and the current price of its common stock is $76 per share. The expected growth rate is 7 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the cost of retained earnings (Ke). Cost of retained earnings % b. If a $7.0 flotation cost is involved, compute the cost of new common stock (Kn). Cost of new common stock %
Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity is $900,000. What is the equity multiplier? Return on equity? Net Income?
Question
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.20%. What percentage of its earnings does Hornberger plow back into the firm? (Round your answer to 2 decimal places.) Plowback ratio %
The Tribiani Company just issued a dividend of $2.60 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $43.40 a share, what is the company's cost of equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Cost of equity
Mannix Corporation stock currently sells for $25 per share. The market requires a return of 10.4 percent on the firm's stock. If the company maintains a constant 3.2 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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