FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 11, Problem 12E
To determine
Concept Introduction:
Preferred stock dividends: Preferred stock carries preferential rights for dividends that are the preferred stockholders are paid their dividends before any dividends paid to common stockholder’s when the dividends are declared. Cumulative preferred stock gives its owners a right to be paid the current and all prior periods’ unpaid dividends.
The computation of dividends paid each year to two classes of stockholders.
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The denominator of Earnings per share computation includes the weighted average number of common shares outstanding. Give three explanations why use the weighted average instead of the year-end common shares outstanding.
TRUE OR FALSE
Earnings per share is found by taking the net income for the year divided by the number of common shares outstanding at the end of the year.
In computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are
a. considered outstanding at the beginning of the reporting period
b. weighted by the number of months outstanding.
c. considered outstanding at the payment date.
d. weighted by the number of days outstanding.
Chapter 11 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 11 - Prob. 1QSCh. 11 - Prob. 2QSCh. 11 - Prob. 3QSCh. 11 - Prob. 4QSCh. 11 - Prob. 5QSCh. 11 - Prob. 6QSCh. 11 - Prob. 7QSCh. 11 - Prob. 8QSCh. 11 - Prob. 9QSCh. 11 - Prob. 10QS
Ch. 11 - Prob. 11QSCh. 11 - Prob. 12QSCh. 11 - Prob. 13QSCh. 11 - Prob. 14QSCh. 11 - Prob. 15QSCh. 11 - Prob. 16QSCh. 11 - Prob. 17QSCh. 11 - Prob. 18QSCh. 11 - Prob. 19QSCh. 11 - Prob. 20QSCh. 11 - Prob. 21QSCh. 11 - Prob. 22QSCh. 11 - QS 11-15 Basic earnings per share A1
Epic company...Ch. 11 - Prob. 24QSCh. 11 - Prob. 25QSCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21ECh. 11 - Prob. 22ECh. 11 - Prob. 23ECh. 11 - Prob. 24ECh. 11 - Prob. 1PSACh. 11 - Prob. 2PSACh. 11 - Prob. 3PSACh. 11 - Prob. 4PSACh. 11 - Prob. 1PSBCh. 11 - Prob. 2PSBCh. 11 - Prob. 3PSBCh. 11 - Prob. 4PSBCh. 11 - Prob. 5PSBCh. 11 - Prob. 11SPCh. 11 - Prob. 1.1AACh. 11 - Prob. 1.2AACh. 11 - Prob. 1.3AACh. 11 - Prob. 1.4AACh. 11 - Prob. 1.5AACh. 11 - Prob. 2.1AACh. 11 - Prob. 2.2AACh. 11 - Prob. 2.3AACh. 11 - Prob. 2.4AACh. 11 - Prob. 3.1AACh. 11 - Prob. 3.2AACh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - List the general rights of common stockholders.Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQCh. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - Prob. 1BTNCh. 11 - Prob. 2BTNCh. 11 - Prob. 3BTNCh. 11 - Prob. 5BTN
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- The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Includes both state and federal taxes. Refer to the information for Santiago Systems above. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.arrow_forwardStockholder Payout Ratios The following information pertains to Milo Mindbender Corporation: Required: Calculate the dividend yield, dividend payout, and total payout. (Note: Round answers to two decimal places.)arrow_forwardThe income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and the Return on Stockholders Equity Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.arrow_forward
- The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Includes both state and federal taxes. Refer to the information for Santiago Systems above. Note: Round answers to two decimal places. 1. Compute the number of common shares. 2. Compute earnings per share.arrow_forwardIn computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are weighted by the number of days outstanding. weighted by the number of months outstanding. considered outstanding at the beginning of the year. considered outstanding at the beginning of the earliest year reported.arrow_forwardA company has cumulative preferred stock. When computing earnings per share, the current year's dividends not declared on the preferred stock should be: A. Deducted from earnings for the year. B. Deducted, net of tax effect, from earnings for the year. C. Added to earnings for the year. D. Ignored.arrow_forward
- Use the following information to obtain the ratios requested below. Where necessary, carry answers to one decimal place Dividends per share: $1.14 Market price per share: $54 Net income: $118,000 Stockholders' equity, beginning of year: $500,000 Stockholders' equity, end of year: $530,000 Earnings per share: $1.75 a. Dividends yield = .............................% b. Return on equity = ............................% c. Price/earnings (P/E) ratio =............................ timesarrow_forwardFor the purpose of calculating earnings per share (EPS), the denominator is:Select one:a. Outstanding ordinary shares at balance date.b. Weighted-average number of the sum fully paid ordinary shares and partly paid equivalents.c. Outstanding ordinary shares at balance date and weighted-average number of fully paid ordinary shares.d. Weighted-average number of fully paid ordinary shares.arrow_forwardJolie Foster Care Homes Incorporated shows the following data: Net Income $ 130,000 143,000 207,000 Total Assets $ 2,330,000 2,050,000 2,740,000 200,000 2,160,000 Year 20X1 20X2 20X3 20X4 a-1. Compute the ratio of net income to total assets for each year. Note: Input your answers as a percent rounded to 2 decimal places. Year 20X1 20X2 20X3 20X4 Return on Assets % % % Stockholders' Equity $ 1,795,000 1,587,000 1,790,000 1,620,000 % Total Debt $ 535,000 463,000 950,000 540,000arrow_forward
- Wq.4.arrow_forwardDetermine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Return on common stockholders' equity Earnings per share on common stock Price-earnings ratio Dividends per share of common stock Dividend yieldarrow_forwardFor puposes of computing the weighted average number of shares outstanding during the year, a midyear event that must be treated as occurring at the beginning of the year is the: a. issuance of stock warrants b. purchase of treasury stock c. sale of additional common stock d. declaration and issuance of a stock dividendarrow_forward
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