Return on equity…… Select one: a. is calculated by dividing net income plus preferred dividends by average common stockholders’ equity. b. is a measure used to compare companies of different sizes. c. is a measure of the ratio of net income to dividends declared

Q: Define each of the following terms.b. Cumulative dividends; arrearages

A: Cumulative dividend: It may be a power related to a given firm's preferred shares. A set amount or…

Q: A stock's capital gains are equal to its dividend divided by the stock price. OA. True OB. False

A: The required rate of return on a stock measures the rate of return desired by the investors in the…

Q: Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The…

A: A. A stock split: No change in total equity   B. Recording Revenue: Increase in total equity   C.…

Q: Using the information in the following chart, and PE Multiples, what is the per-share intrinsic…

A: The price-to-earnings ratio of a firm is calculated as: P/E ratio=Earnings Per Share(EPS)Share…

Q: Retained earnings, as a form of equityfinancing, area. gross earnings.b. profits before taxes.c.…

A: Equity financing: It is a method to raise money for business operations and growth. Retained…

Q: A stock dividend a. increases the debt to equity ratio of a firm. b. decreases future earnings per…

A: The correct answer is Option (b).

Q: What are common-size financial statements and how are they used? What item is the key figure (that…

A:

Q: Match the ratio to what it measures F. Current ratio Acid test ratio Working capital Accounts…

A: The objective of the question is to match the financial ratios with their respective definitions or…

Q: Ratios or Percentages Definitions 1. Inventory turnover ratio 2. Dividend yield ratio 3. Return on…

A: Financial ratios enable the standardization of the reporting of a firm's financial performance and…

Q: Match each ratio that follows to its use. Items may be used more than once.     Indicate…

A: Definition:   Ratio analysis: Ratio analysis is a quantitative method of gaining insight into a…

Q: O earch Which of the following statements is true? 1. The formula for the return on equity is:…

A: The true statement among the options is:I. The formula for the return on equity is: Return on equity…

Q: Define each of the following terms:b. Common stockholders’ equity, or net worth; retained earnings

A: Common stockholders' equity or net worth: Common stockholders' equity or net worth is the capital…

Q: return on common stockholders

A: The return on common stock represents the net income earned by the company which would be available…

Q: What are the distributions to the stockholders by a firm called?  A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: Which of the following statements correctly describe PE ratio? a. Price of ordinary share on the…

A: Financial Ratio analysis is the formula used to analyse and evaluate the relationship between two or…

Q: Explain the Summary of the Effect of Potential Common Shares on Earnings Per Share.

A: The companies which are listed on securities exchange are required to report the Earnings per share…

Q: TRUE OR FALSE? In computing earnings per share, we must interpret this in terms of the number of…

A: EPS or Earnings-per-Share refers to portion of net profit that belongs to each single unit of common…

Q: An increase in Select one: OA. dividends paid OB. retained earnings O C. OD. will increase common…

A: Common equity is an important indicator of a company's financial health and its ability to withstand…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.