SW Company provides the Equity & Liability Information below for analysis. SW Company had net income of $365,700 in 2023 and$352,900 in 2022.Equity and LiabilitiesShare capital-common (132,300 shares issued)Retained earnings (Note 1)Accrued liabilitiesNotes payable (current)Accounts payableTotal equity and liabilitiesReturn on equityNote 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023.Required:1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,364,100 at December 31, 2021.)(Round your answers to 1 decimal place.)2022Book value per share%2022202320232022$1,282,500 $1,282,500%2023382,20010,00072,00060,800$1,807,5002. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.)308,5006,00066,100177, 200$1,840,300

Equity returns in terms of percentage can be found by dividing the net income by the amount of…

Answered: SW Company provides the Equity &…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Balance Sheet of Do Well Ltd. As on 31st March, 2016 was as follows: 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital: Equity Shares @ $10 each 2,00,000 (Ь) Reserves and Surplus : Surplus Account 1,20,000 (2) Non-current Liabilities 6% Debentures 1,20,000 (2) Current Liabilities Creditors 60,000 Proposed Dividend 20,000 Total Equity and Liabilities 5,20,000 II. Assets (1) Non-current Assets Fixed Assets : Freehold Property 1,00,000 (2) Current Assets Stock 1,20,000 Debtors 80,000 Balance at Bank 2,20,000 Total Assets 5,20,000 At the annual general meeting held on 18th April, 2016 it was resolved: (i) To declare dividend of 10% for the accounting year ended on 31st March, 2016. (ii) To issue one bonus share for every 4 shares held out of Surplus Account. (iii) To give existing shareholders the option to purchase for cash one share for $15 for every 4 shares held prior to the bonus distribution. This option was accepted by all the shareholders. (On this no bonus share…
D1. Account
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