Earnings per Share (EPS): The part of profit earned by each share of the Company is called as earning per share. It reveals the profitability of the company. To calculate earnings per share net income is divided by average number of outstanding shares. Return on Common Stockholders’ Equity : The profit that stockholders receive in return of their investment is called as return on stockholders’ equity. It reveals the profitability ratio of the Company. It is always in percent form. Dividend: The amount that shareholders receive in return of their investment is called as dividend. The distribution of net income of the Company to the shareholders in return of their investment is the dividend. To determine: The earnings per share and return on stockholders’ equity of Company P and C for 2013 and can these measures be used to compare profitability of the two companies.
Earnings per Share (EPS): The part of profit earned by each share of the Company is called as earning per share. It reveals the profitability of the company. To calculate earnings per share net income is divided by average number of outstanding shares. Return on Common Stockholders’ Equity : The profit that stockholders receive in return of their investment is called as return on stockholders’ equity. It reveals the profitability ratio of the Company. It is always in percent form. Dividend: The amount that shareholders receive in return of their investment is called as dividend. The distribution of net income of the Company to the shareholders in return of their investment is the dividend. To determine: The earnings per share and return on stockholders’ equity of Company P and C for 2013 and can these measures be used to compare profitability of the two companies.
Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.
Chapter 14, Problem 14.2BYP
(a)
To determine
Earnings per Share (EPS): The part of profit earned by each share of the Company is called as earning per share. It reveals the profitability of the company. To calculate earnings per share net income is divided by average number of outstanding shares.
Return on Common Stockholders’ Equity: The profit that stockholders receive in return of their investment is called as return on stockholders’ equity. It reveals the profitability ratio of the Company. It is always in percent form.
Dividend: The amount that shareholders receive in return of their investment is called as dividend. The distribution of net income of the Company to the shareholders in return of their investment is the dividend.
To determine: The earnings per share and return on stockholders’ equity of Company P and C for 2013 and can these measures be used to compare profitability of the two companies.
(b)
To determine
The amount of dividend paid by company P and C in, 2013.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.