Please correct answer and don't use hand raiting Lenow Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capitalstructures for Lenow and Hall are presented here.LenowHallDebt @9%Common stock, $10 par$160,000320,000Debt @9%TotalCommon shares$ 480,00032,000Common stock, $10 parTotalCommon shares$ 320,000160,000$ 480,00016,000a. Complete the following table given earnings before interest and taxes of $20,000, $43,200, and $61,000. Assume the tax rate is 20percent.Note: Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places. Leave nocells blank be certain to enter O wherever required.EBITTotal AssetsEBIT/TA%Lenow EPSHall EPSWhat is the relationship between theEPS of the two firms?$20,000 $ 480,000%Lenow EPS Hall EPS$43,200 $480,000%Lenow EPS Hall EPS$61,000 $480,000%Lenow EPS

Here is a brief explanation of how I came to the findings:1. Part A of the EPS Calculation:I started…

Answered: Lenow Drug Stores and Hall…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.Total assets$300,000Stockholders' equity—common150,000Total stockholders' equity200,000Sales revenue100,000Net income25,000Number of shares of common stock6,000Common dividends5,000Preferred dividends7,000What is the return on common stockholders' equity ratio for Benedict?
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The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Υ7 20Y6 20Υ5 Total assets $192,000 $173,000 $154,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12.000 12,000 12,000 (no change during year) Retained earnings 70,415 45,870 36,000 The 20Y7 net income was $25,025, and the 20Y6 net income was $10,350. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % Return on stockholders' equity Return on common stockholders' equity % b. The profitability ratios indicate that the company's profitability has Since the rate of return on total…
You are given the following information: Stockholders? equity = GHS1,250; price/earnings ratio = 5; shares outstanding = 25; and %3D market/book ratio = 1.5. %3D Calculate the market price of a share of the company?s stock. O A. GHS 33.33 B. GHS 75.00 C. GHS 10.00 D. GHS166.67 O E. GHS133.32
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Allison & Company and Bee, Incorporated, reported the following numbers (in millions except for per share price) for fiscal year 2021. \table[[Allison & Company,Dee, Incorporated,], [Shares outstanding,S605.70, S227.24
[The following information applies to the questions displayed below.] The stockholders' equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) (S and shares in thousands) Stockholders' equity: Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained earnings 5,800 28,000 1,028,600 1,062,400 286,000 (360,000) $ 988,400 Treasury stock, 12,000 common shares Total stockholders equity Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands Problem 10-4A Part 4 4. If retained earnings at the beginning of the period was $248 million and $28 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.., 5,000,000 should be entered as 5).) Net income million
You have the following information about Trisha Company: total asset =P350,000; common stock equity = P175,000; Return on Equity (ROE) =12.5%. What is Trisha’s earnings available for common stockholders? A. P21,875B. P43,750C. P50,000D. P47,632
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Shown below is the liabilities and stockholders’ equity section of the balance sheet for Jana Kingston Company and Mary Ann Benson Company. Each has assets totaling $4,200,000. Jana Kingston Co. 000 Mary Ann Benson Co. Current liabilities $ 300,000 Current liabilities $0.600,000 Long-term debt, 10% 1,200,000 Common stock ($20 par) 2,900,000 Common stock ($20 par) 2,000,000 Retained earnings (Cash dividends, $328,000) 700,000 Retained earnings (Cash dividends, $220,000) 00.700,000 0 00.700,000 00 $4,200,000 00 $4,200,000 For the year, each company has earned the same income before interest and taxes. 00 0000 Jana Kingston Co. 0000 Mary Ann Benson Co. Income before interest and taxes $1,200,000** $1,200,000*** Interest expense 00120,000** 00–0–****** 00 1,080,000** 1,200,000*** Income taxes (20%) 00216,000** 00240,000*** Net income $ 864,000** $ 960,000*** At year-end, the market price of Kingston's stock was…
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Diva, Inc. recorded the following capital stock transactions: Balance Sheet Assets = Liabilities + Stockholders' Equity Common PIC in Excess of Treasury PIC from Stock + Common Stock + Stock + Treasury Stock |(1) 1,092,500 115,000 977,500 |(2) (61,600) (61,600) (3) 49,920 42,240 7,680 Use the following additional information about the above transactions when answering questions a through e. (1) issued common stock for $19 cash per share (2) purchased treasury shares at $22 per share. (3) sold some of the treasury shares: a. How many shares were originally issued? b. What was the par value of the shares issued? $ c. How many shares of treasury stock were acquired? d. How many shares of treasury stock were sold? e. At what price per share was the treasury stock sold? $

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