1.
Common Stock: The total amount of money a business owner includes in business is the common stock. The owner can use the rights by voting for important matters in the general meetings of the company.
To compute: The rate of return on beginning equity which can be earned by the founder. Also, explain the plan in which maximum return can be expected.
2.
Rate of Return: The return on the investment in terms of percentage over a particular time period is stated as the rate of return. This value is determined by dividing the net return from investment by the initial cost of the investment.
To compute: The rate of return on beginning equity which can be earned by the founder. Also, explain the plan in which maximum return can be expected.
3.
Rate of Return: The return on the investment in terms of percentage over a particular time period is stated as the rate of return. This value is determined by dividing the net return from investment by the initial cost of the investment.
To analyze: The difference between the results of Parts 1 and 2.

Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
FINANCIAL & MANAGERIAL ACCT. CONNECT
- Gimpy Corp. has variable costs that are 75% of sales, current sales of $800,000, and fixed costs of $150,000. What is the required sales amount to achieve a $85,000 net income? Answerarrow_forwardPlease give me true answer this financial accounting questionarrow_forwardHow much cash disbursement for Material purchase be?arrow_forward
- answer plzarrow_forwardSummit Enterprises had a pre-tax accountingarrow_forwardCorruption Please response to the following: Describe the four types of corruption: conflicts of interest, economic extortion, unlawful gratuities, and bribery. Which one is more difficult to discover during an inquiry, in your opinion, and why? Make sure to reply to at least one post made by one of your classmates.arrow_forward