The payout ratio is calculated by dividing Select answer from the options below - (I selected "b") came back as incorrect a. dividends per share by earnings per share and dividing cash dividends by net income less preferred dividends. b. dividends per share by earnings per share. c. cash dividends by net income less preferred dividends. d. cash dividends by the market price per share.

The payout ratio is calculated by dividing Select answer from the options below - (I selected "b") came back as incorrect a. dividends per share by earnings per share and dividing cash dividends by net income less preferred dividends. b. dividends per share by earnings per share. c. cash dividends by net income less preferred dividends. d. cash dividends by the market price per share.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8MC: When treasury stock is purchased for cash at more than its par value, what is the effect on total...

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Which of the following statements is true about vertical analysis? O a. It is not useful for analyzing changes in financial statements over time O b. It is useful in analyzing relationships within a financial statement. O c. Each line item is expressed as a percent of stockholders' equity. O d. The amount of change in each line item is calculated.
When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders’ equity under each of the following methods?
me retention ratio can be computed as: Multiple Choice 1-Plowback ratio. Change in retained earnings/Cash dividends. 1+ Dividend payout ratio. (Change in retained earnings + Cash dividends)/Net income. 1-(Cash dividends/Net income). 8 9 Help Save & Exit Sut
The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock. Group of answer choices True False
Northwest Utility Company faces increasing needs for capital. Fortunately, it has an Aa3 credit rating. The corporate tax rate is 35 percent. Northwest's treasurer is trying to determine the corporation's current weighted average cost of capital in order to assess the profitability of capital budgeting projects. Historically, the corporation's earnings and dividends per share have increased about 6.2 percent annually and this should continue in the future. Northwest's common stock is selling at $60 per share, and the company will pay a $4.50 per share dividend (D₁). The company's $100 preferred stock has been yielding 8 percent in the current market. Flotation costs for the company have been estimated by its investment banker to be $2.00 for preferred stock. The company's optimum capital structure is 50 percent debt, 10 percent preferred stock, and 40 percent common equity in the form of retained earnings. Refer to the following table on bond issues for comparative yields on bonds of…
The value of a share is given by the present value of which cash flow(s): O a. Future dividends only Ob. The last dividend and future dividends c. The current dividend and future dividends d. The most recent dividend and future dividends e. None of the options is correct
a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio is normally higher? Why?
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.d. is calculated for preferred stock only.
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Answer the multiple-choice question below: 1. Which of the following ratios would analysts use to value stocks? Select one: a. Price per Earnings b. Price per sales c. Price per cash flow d. All of the above
Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield Debt ratio Current Ratio Price/Earnings Ratio Acid-test ratio Earnings per share 1. The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.