General Accounting Roe Question: 92The following information is for two companies Martin Industries and Modern Industrial.Revenue:Total Assets:Martin Industries Modern Industrial$85,000,000$40,000,000$525,000,000$375,000,000Total Liabilities:$300,000,000$250,000,000Net Profit Margin: 18%25%Operating Margin:30%20%Tax Rate:34%34%Shares outstanding: 10,000,000Calculate the ROE for each company using the 3-Part Dupont Analysis.10,000,000

Explanation of Return on Equity (ROE): Return on Equity (ROE) is a measure of a company's…

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

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Chapter15: Dividend Policy

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Problem 1P

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A corporation using the cost method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 120,000 b. 100,000 c. 115,000 d. 112,000
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X Company: Income Statements for the Years Ending December 31 ( Millions of Dollars, Except for Per Share Data) 1995 1996 Net Sales 4000 4250 Operating Costs except depreciation and amortization 3750 3900 Depreciation and amortization 100 90 Total operating costs 3850 3990 Operating income, or earnings before interest and taxes 150 260 Less interest 50 60 Earnings before taxes 100 200 Taxes (25%) 25 50 Net Income 75 150 Total Dividends 25 25 Additional to retained earning 50 125 Calculate Common Stock Price 25 25 Earnings Per Share ______________ ____________________ Dividend Per Share ______________ ____________________ Note: X company has 30 million shares of common stocks outstanding. Earnings Per Share is based on net income available to common stockholders Calculate Earnings Per Share and…
Chapter 14, Question 1
17 Rainee Corporation's revenue for the current year were as follows: Consolidated revenue per income statement P1,200,000 Intersegment sales 180,000 Intersegment transfers 60,000 Combined revenues of all operating segments P1,440,000 Rainee has a reportable segment if that operating segment's revenues is at least_
Question: Parent Co. invested $1,070,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year. Use the information in the following T- account for the investment in Sub to answer the following questions. Investment in Sub Co. 1,070,000 130,000 52,000 (a) How much was Parent Co.'s share of Sub Co.'s net income for the year? (b) How much was Parent Co.'s share of Sub Co.'s dividends for the year? (c) What was Sub Co.'s total net income for the year? (d) What was Sub Co.'s total dividends for the year?
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Problem 19-4 Per-Share Ratios (LO3, CFA6) You are given the following information for Smashville, Inc. Cost of goods sold: $249,000 Investment income: $2,900 Net sales: $394,000 Operating expense: $92,000 Interest expense: $7,400 Dividends: $13,000 Tax rate: 21 % Current liabilities: $22,000 Cash: $21,000 Long-term debt: $9,000 Other assets: $37,000 Fixed assets: $139,000 Other liabilities: $5,000 Investments: $13,000 Operating assets: $49,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
9
Case 2 Company ABC Assets turnover Gross Sales Sales Discounts Gross Profit Operating Profit Permanent Capital Financial Leverage 2% 1.050.000 35000 18% 9% 345.000,00 35% Acid Test ratio 1,5% Fixed assets turnover 4 Liquid assets 10% Tangible fixed assets/ Shareholders Equity 30% Requirement: Prepare the Balance Sheet and Income Statement of Company ABC

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