Solve these general accounting problem do fast S. Panya has total assets of $1,000,000; common equity of $400,000; a grossprofit of $800,000; total operating expenses of $620,000; interest expense of$20,000; income taxes of $74,000; and preferred dividends of $30,000. Whatis S. Panya's return on equity?A. 20%B. 14%C. 7.5%D. 21.5%

Step 1: Return on equity can be calculated by dividing the Net income available to common…

Answered: S. Panya has total assets of…

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 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Assume Meyer Corporation is 100 percent equity financed. Calculate the return on equity, given thefollowing information:Earnings before taxes 1,500Sales 5,000Dividend payout ratio 60%Total assets turnover 2Tax rate 30%
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S. Panya has total assets of $1,000,000; common equity of $400,000; a gross profit of $800,000; total operating expenses of $620,000; interest expense of $20,000; income taxes of $74,000; and preferred dividends of $30,000. What is S. Panya's return on equity? A. 20% B. 14% C. 7.5% D. 21.5%