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: Which of the following is ratios represents dividends per common share in relation to market price…

A: The ratio represents dividend per common share in relation to Market price per common share is as…

Q: Return on Capiatal employed =  O a. Return on Total Assets  O b. Return on Equity  Oc. Return on…

A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…

Q: which of the following ratios indicate the proportion of earnings paid as dividends .a dividends…

A: dividend pay out formula: dividend payout =dividendnet income

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: Question 4: (a) What are the principal differences between common stock and preferred stock? (b)…

A: a) The principal differences between common/equity stock and preferred stock are: The preferred…

Q: The following are investor ‘ratios except:   EPS P/E Ratio Dividend cover ROCE

A: Investor ratios are the financial ratios that the investors use in order to evaluate the company's…

Q: When accounting for small share dividend, which of the following will be use in recording such…

A: The share dividend is the dividend provided to the shareholders in the form of shares.

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

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: When a dividend is declared and paid in stock *   Choices; stockholders' equity does not change.…

A: Stock dividends are distributions to shareholders that companies make when they do not wish to…

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: FIND weighted Average Cost of Capital Answer 1 FIND the weighted Cost of Preferred…

A: The weighted average cost of capital indicates the total average cost of the business entity from…

Q: 1. Use of multiples for company valuation requires selecting a set of companies in same economic…

A: Since you have posted multiple questions, we will provide the solution only for the first five…

Q: leverage ratio is equal to average total …… divided by average…… Select one: a. assets; common…

A: Solution: leverage ratio = Average total debt / Average total common stpckholders' equity therefore,…

Q: When treasury shares are resold at a price above cost: a. Paid-in capital is reduced.  b. Paid-in…

A:

Q: Discus each of the following ratios as used in fundamental analysis and what each ratio reveal.…

A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…

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: When it comes to accounting for stock dividends, what is the difference between the accounting for a…

A: In the stock market, dividends are paid out to shareholders:

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: EPS is computed by dividing net income by the average number of shares outstanding.  True  False

A: Earnings per share(EPS) refers to an indicator or a financial ratio that shows how much a company is…

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: Explain the following Investment ratios and indicate how they are computed: Earnings per share (EPS)…

A: Earnings per share (EPS) is ascertained as the benefit of an organization divided by outstanding…

Q: Which of the following ratios is used to analyze liquidity?a. Earnings per share.b.…

A: Liquidity is the ability of the organisation to pay off its short term obligations.

Q: Directions: Identify the variables if it can be regarded as a response variable and if it can be…

A: The experiment's response variable is the outcome. It is a variable whose variation is explained by…

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: Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick…

A: The liquidity ratios helps to know about the capability of the business to pay off its liabilities…

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…

Q: 2.) Compare and Contrast the relationship of the number of shares to the dividend the stockholder…

A: Stockholder is the person who has invested money in the stock of the company. Stockholder gets…

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.