(i) What is the net income for each company? (ii) What is the return on equity for each? (iii) What explains the two companies' different ROE despite their similar earnings?

Q: What is the impact of decrease in assets or increase in liabilities resulting in decreases in…

A: when the assets reduces, the profits of the company also tends to fall. there can be no chance of…

Q: profit of a firm if a debenture is issued at

A: A debenture is said to be issued at a premium  when the price charged is more than its nominal…

Q: how do I analyze changes in a company's equity

A: This shows the capital of the company.

Q: QUESTION 2 Dividend policy can affect the value of the firm for which of the following reasons?   a.…

A: Dividend policy can affect the value of the firm for following reasons

Q: How does retained earnings increase? What are the two ways that retained earnings decreases?

A: Retained earnings is a reserve kept aside from the surplus income earned to use it for re investment…

Q: What is basic earnings per share (EPS)?

A: Introduction:- Basic earning per share denotes amount of net profit attributable to each common…

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: Is it true that the book value of a company equals the value or it's assets according to their…

A: Book value of the firm is the value of its liquidating i.e the total amount when its assets are sold…

Q: 1. What does the beginning balance of retained earning indicate? And what does the following that is…

A: Retained earnings are the accumulated earnings of the business that is fully attributable to the…

Q: Why does a Chief Financial Officer need to know their company's cost of equity?

A: A chief financial officer is one of the  top-level executive. The CFO is a financial controller who…

Q: 31) What is the percentage of a firm's earnings that is distributed to shareholders called?

A: Earning is the amount of profit which is earned by the company from doing business. It includes the…

Q: What are if any the differences between Stockholder's Equity, Retained Earnings, Common Stock,…

A: Owner’s equity is the difference between total assets and total liabilities. Owner’s equity is…

Q: for the cash flow to shareholders wouldnt the addition to retain earning be included?

A: Cash flow is the movement of cash. It can be inflow or outflow. Where cash comes comes, it is called…

Q: Which does not affect total shareholders’ equity? a. Stock dividend b. Scrip dividend c. Cash…

A: The dividend is paid to the shareholders from the retained earnings of the business.

Q: 19.  Which of the following statements relating to earnings per share is not true? __________ It is…

A: Ratio analysis is a technique that is used to gain insight into the organization's profitability,…

Q: What does the statement of retained earnings show?

A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…

Q: What is the benefit of published financial statements for companies and the ratio analysis?

A: Solution:- Financial statements show the financial performance of the company over a period of time…

Q: Which one of the following is a nominal (temporary) account?   Select one: Supplies Dividends…

A: Under traditional accounting, the accounts are categorized as nominal accounts and real accounts.…

Q: What account impacts the equity of a business?

A: The Equity of the business is effected by following accounts, with the transactions mentioned as…

Q: Explain the theory behind the residual income valuation approach.  Discuss why residual income value…

A: The estimation of the remaining revenue utilizes the book value parameters for common shareholder…

Q: How does retained earnings increase? What are the two ways that retained earnings decrease?

A: Retained earnings get increased if company generates net income.Retained earnings get decrease if…

Q: When a company decides to pay a dividend, explain what makes the payment a dividend as opposed to…

A: Dividends will be declared and paid by the companies to their shareholders. There are two types of…

Q: Which of the following is a cost associated with an IPO? Interest expenses Out-of-pocket expenses…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: e formula for dividend paid different both times?

A: If a firm has EBIT in perpetuity, then the value of the firm is calculated as shown below. Value of…

Q: What is equity method accounting?

A: Equity method of accounting is the accounting method used to account for investments in associates…

Q: What are the multiplier ways to calculate the cost of equity? Why are there multiply ways to…

A: There are multiple ways to calculate the cost of equity. We have to talk about them and see if they…

Q: political cost hypothesis

A: Political cost hypothesis states that if the political costs are higher, managers use accounting…

Q: How would you differentiate expenses and Losses? A Expensen is gross infow of ecanomic benefits…

A: SOLUTION- EXPENSES  IS AN INCURRED COST THAT HAS BEEN CONSUMED IN ORDER TO EARN REVENUES . EXAMPLE -…

Q: what reduces both basic earnings and dilluted earnings per share?

A: There are several factors that can reduce both basic earnings per share (EPS) and diluted EPS:…

Q: What is the company's dividend policy

A: Dividend is some portion of company’s profit that the shareholders get for investing their money in…

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: 1. Which of the following would appear first in a statement of retained earnings?  Choices; Cash…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…