Selected financial data from the June 30 year-end statements of Safford Company are given below. Total assets at the beginning of the year were $5,600,000 and total stockholders' equity was $2,600,000. The company's tax rate is 35%. Determine the return on equity. Total assets $5,800,000 Long-term debt (9%interest rate) $680,000 Total stockholders' equity $2,800,000 Interest paid on long-term debt $61,200 Net income $450,000

Selected financial data from the June 30 year-end statements of Safford Company are given below. Total assets at the beginning of the year were $5,600,000 and total stockholders' equity was $2,600,000. The company's tax rate is 35%. Determine the return on equity. Total assets $5,800,000 Long-term debt (9%interest rate) $680,000 Total stockholders' equity $2,800,000 Interest paid on long-term debt $61,200 Net income $450,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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