For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B? 0.OKB/s 1ll4G+2:41 PM ě8000:50:13 RemainingMultiple ChoiceFor the year 201B, ABC Company'sreturn on common stockholders'equity was 12.5%. Its averagestockholders' equity for the sameperiod was P500,000, inclusive ofP50,000 par value of preferred stockwith a dividend rate of 8%.How much was the company's netincome for 201B?O P60,250P56,250O P58,500P62,5004 of 20

Return on common shareholders equity means how much net income is being earned on common…

For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B?

For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The market capitalization of Big Bang Corp. is $364,000 at the company's most recent trade of $4.00…

A: Market capitalization is multiple of market price and number of stock outstanding. Therefore formula…

Q: The following information is available for Meyer Company: Dividends per share of common stock $1.80…

A: Ratio analysis is a technique of gaining inside review of an organisation, this make us able to…

Q: Windswept, Inc. has 8.5 million shares of stock outstanding. Its net income is $2.3 million. Its…

A: Solution:Price earnings ratio represents that how much times is the share price of the firm in…

Q: A company paid cash dividends of $0.81 per share. Its earnings per share is $6.95 and its market…

A: Given: Cash dividend per share = $0.81 Earnings per share = $6.95 Market price per share = $45.00

Q: XYZ Inc paid preferred dividends $8,500, reported a net income of $95,000, preferred stock of…

A: Return On Common Equity refers to the percentage of return or earnings from the overall profits of…

Q: A company has revenues of $24 million and depreciation and amortization expenses of $9 million.…

A: Given,Revenue = 24 millionDepreciation and amortization expenses = 9 million Operating margin =…

Q: A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…

A: Dividend: The dividends are the returns provided to the shareholders by the company. The dividends…

Q: On June 17th, 2016 Walmart stock had a price of $71.30, a P/E ratio of 15.7, and a dividend yield of…

A: Earnings per share means amount of earning attributable to each share in the business. P/E ratio is…

Q: arket value analysis) The balance sheet for Larry Underwood Motors shows a book value of…

A: Data given: Book value of stockholder's equity=$1,343,000 Net income=$539,000 Earnings per…

Q: A company paid $0.76 in cash dividends per share. Its earnings per share is $4.48 and its market…

A: DPS stands for "Dividends per Share," which is the total amount of dividends paid out to…

Q: Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock…

A: The market value added is the difference between the market value of the firm and the capital…

Q: Markus Company’s common stock sold for $2.75 per share at the end of this year. The company paid a…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: The following is the information on common stock issued by Huntington Power Co. Calculate the cost…

A: Dividend discount model will be used here. As per the dividend discount model the value of stock…

Q: Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $1,275…

A: The share price refers to the amount that an investor is willing to pay to acquire one unit of…

Q: Using the observed growth rate on DPS, determine the expected share price for Company B on 31…

A: Under Dividend Growth Model, P0 = D1 / (r - g) Here, P0 = Price of the Share now D1 = Dividend for…

Q: The statement of stockholders' equity shows an $8,000 increase in the common stock account, a…

A: Net income is the amount of money earned by an entity after deducting the expenses from the…

Q: Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from…

A: Earnings per share :— It is calculated by dividing earnings available to common stockholders' by…

Q: Firestone Co. just paid a dividend of $1.50 per share and its earnings per share is $9.00. Its book…

A: Retention ratio = (Earning per share - Dividend Per Share) / Earning per shareRetention ratio = ($9…

Q: The market capitalization of Abutia Plc as at 31 December 2018 was GHC21 million. The stated capital…

A: Price Earning Ratio refers to a financial ratio that is being used in order to value a stock and…

Q: National City Bank has 686,900,000 shares of common stock outstanding that are currently selling for…

A: The question is based on the concept of Financial Management.

Q: National Company's net income last year was P75,000. The company paid preferred dividends of P12,000…

A: Calculate the income available to the common stockholders' by deducting the preferred dividends…

Q: FedEx Corporation (FDX) has a current share price of $157.56 and is expected to have earnings per…

A: PE ratio of FDX stock= Price of FDX stock / EPS of FDX stock= 157.56/11.04= 14.27173913

Q: Lear & Co has a PE of 15.3, a forward PE of 14.8, and a price of $35.80 per share. The company has…

A: The remaining amount of the revenue after the deductions of the expenses and the tax amount is term…

Q: (Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of…

A: Stock valuation:Investors use stock valuation to make informed investment decisions. If a stock is…

Q: (Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of…

A: An equity share is a capital market security which offers the ownership interest in the company and…

Q: Sheridan Corporation had net income of $470000 and paid dividends to common stockholders of $34780…

A: Introduction: Dividend payout ratio: This ratio tells the how much dividend is distributed with its…

Q: Blossom Bank has 640,000,000 shares of common stock outstanding that are currently selling for…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: Your firm has net income of $210,000. The number of outstanding shares of common stock is 140,000.…

A: Common stockholders are considered as the owner of the company to which a regular income is provided…

Q: FedEx Corporation (FDX) has a current share price of $157.62 and is expected to have earnings per…

A: Market price refers to the price at which the stocks are being bought or sold by the investors in…

Q: Outstanding Common shares = 1.05 Millions. Company PE ratio is 13.8 Net income for the year is $…

A: The price-to-earnings ratio (P/E ratio) is a valuation ratio that compares a company's current share…

Q: ce-eamin a. What price would you expect Underwood Motors shares to sell for? b. What is the book…

A: Information Provided: Book value = $1,319,000 Net Income = $586,000 Earnings per share = $0.306 P/E…

Q: earnings per share

A: Dividends are paid out to shareholders from the net income of the firm. However, various…

Q: 5. A company has $6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a…

A: Market value is the total value of shares based on their market price. Book value is the total value…

Q: Corporation X, with a current market value of P62, gave a dividend of P9 per share for its common…

A: The stock yield ratio determines how much cash flow an investor is earning for each rupee invested…

Q: A company paid cash dividends of $0.81 per share. Its earnings per share is $6.95 and its market…

A: Dividend Yield:-This is a financial ratio which shows how much a company pays dividend on each stock…

Q: Concord Corporation had net income of $203000 and paid dividends to common stockholders of $35000 in…

A: The total price-earnings ratio has been calculated by dividing the market price per share by…

Q: A company’s stock price is $50 per share. The company has $15 billion in total assets. Its balance…

A: Book value refers to the value of the asset, security, or liability that the company has recorded…

Q: If the stock currently sells for $77 per share, what is the market-to-book ratio? Makers Corp. had…

A: Market to book ratio = Market price / Book value per share

Q: TNT Corporation's stock is currently selling at $36 per share. TNT reported total revenues of $5.26…

A: Price to Sales Ratio The price to sales ratio is a ratio that shows the relationship between the…

Q: A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market…

A: The ratio analysis helps to analyze the financial statements of the business on regular basis. The…

Q: A firm has ales revenue and net income during the current year of $500,000 and $60,000,…

A: Sales revenue = $500,000Net income = $60,000Stockholder's equity = $600,000 Share outstanding =…

Q: Jensen Inc. has total equity of $72 billion and 720 million shares outstanding. Its ROE is 14.43%.…

A: Equity = e = $72 billionNumber of Shares = n = 720 millionReturn on equity = ROE = 14.43%Dividend…

Q: (Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of…

A: Market value analysis refers to teh method used for calculating the value of investors to the…

Q: price-to-earnings ratio

A: Price to earnings ratio refers to the ratio who is valuing a company which measured the current…

Q: ABC's Net Income this year was $20,650,000 and there were 19.5 million shares outstanding. If the…

A: Given, Net Income = $20650000 Shares Outstanding = 19500000

Q: Verne Corporation has sales of $90952, net income of $788170, total assets of $2039191, and 90952…

A: Formula of P/E Ratio:P/E Ratio= Current market priceEarning per share Importance of P/E Ratio By…

Question

0.OKB/s 1ll
4G+
2:41 PM ě
80
00:50:13 Remaining
Multiple Choice
For the year 201B, ABC Company's
return on common stockholders'
equity was 12.5%. Its average
stockholders' equity for the same
period was P500,000, inclusive of
P50,000 par value of preferred stock
with a dividend rate of 8%.
How much was the company's net
income for 201B?
O P60,250
P56,250
O P58,500
P62,500
4 of 20

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

(Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36.46 a share and pays $2.51 in dividends annually. What is the firm's cost of capital for the preferred stock? The firm's cost of capital for the preferred stock is %. (Round to two decimal places.)
Adiminus Inc had sales of R15 million, a net profit margin of 8%, total assets of R20 million, retained earnings for the year ended 31st December 2021 of R345 000 and paid out cash dividends of R300 000 to ordinary shareholders. The company had total equity of R8 million and 250,000 shares in issue. Calculate the firm’s: a) EPS b) Dividends per share c) Market to book ratio, if each share of the firm sells for R95
North Company has a common stock price of $72. The latest reported earnings per share were $4.80 and dividends per share were $1.60. The return on equity (ROE) is 8%. The cost of equity is closest to:
P6-4. Bebe Co. declared dividends of Php2 per share for their performance last year after the declaration of dividends the market value per share increased to Php45 per share. What is the dividend yield ratio of Bebe Co.?
Ale Corporation had net income of $2,040,000 and paid dividends to common stockholders of $400,000 in 2020. The weighted average number of shares outstanding in 2020 was 600,000 shares. Ale Corporation's common stock is selling for $82 per share on the New York Stock Exchange. Ale Corporation's price-earnings ratio is a. 3.2 times. b. 16.0 times. C. 19 times. d. 12.7 times.
Lear & Co has a PE of 17, a forward PE of 14.5, and a price of $67.40 per share. The company has 85.2 million shares outstanding. Net income for next year is projected to be closest to: O A. $396.0 million. O B. $832.7 million. O C. $337.8 million.
A stock has 94 million shares outstanding, with a current share price of $3.53 per share. If the firm's book value of equity is $120 million, what is its market-to-book ratio?
The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share×total shares outstanding) of $1,332,000. Furthermore, the firm's income statement for the year just ended has a net income of $523,000, which is $0.251 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.18. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares?
Sheridan Corporation had net income of $470000 and paid dividends to common stockholders of $34780 in 2020. The weighted average number of shares outstanding in 2020 was 61000 shares. Sheridan Corporation's common stock is selling for $45 per share on the New York Stock Exchange. Sheridan Corporation's payout ratio for 2020 is 12.98%. 14.80%. 7.40%. $7.70 per share.
Story Corporation had net income of $300,000 in 2018. The weighted average number of shares outstanding in 2018 was 100,000 shares. Donner Corporation's common stock is selling for $36 per share on the New York Stock Exchange. Story Corporation's price-earnings ratio is... O 10.0 times 12.0 times O 36.0 times 72.0 times
A company had additions to retained earnings for the year just ended of Br. 275,000. The firm paid out Br. 150,000 in cash dividends from current earnings, and it has ending total equity of Br. 6 million. If the firm currently has 125,000 shares of common stock outstanding, what are earnings per share? Dividends per share? Book value per share? If the stock currently sells for Br. 95 per share, what is the market-to-book ratio? And, the price-earnings ratio?
The market capitalization of Morning Rose Corp. is $5,580,000 at the company's most recent trade of $9.00 per share. How many shares of stock are outstanding?