Guo Enterprises has owners' equity of $400,000 and a net income of $120,000. It has a payout ratio of 30% and a return on assets (ROA) of 14%. A. How much did Guo Enterprises pay in cash dividends? B. What were its average assets?
Guo Enterprises has owners' equity of $400,000 and a net income of $120,000. It has a payout ratio of 30% and a return on assets (ROA) of 14%. A. How much did Guo Enterprises pay in cash dividends? B. What were its average assets?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...
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Transcribed Image Text:Guo Enterprises has owners' equity of $400,000 and a net
income of $120,000. It has a payout ratio of 30% and a
return on assets (ROA) of 14%.
A. How much did Guo Enterprises pay in cash dividends?
B. What were its average assets?
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