Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 3, Problem 9P
Summary Introduction
To calculate: The return on shareholder’s equity of Network Communications.
Introduction:
Return on shareholder’s equity:
A profitability ratio that helps analysts determine the effectiveness and the efficiency with which the firm is using its assets for the generation of revenue, is termed as the return on shareholder’s equity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Network Communications has total assets of $1,400,000 and current assets of $600,000. It turns over its fixed assets 4 times a year. It has $300,000 of debt. Its return on sales is 5 percent.
What is its return on stockholders' equity
Breakaway wealth had net earnings of $336,000 this past year. dividends were paid of $77,280 on the company's book equity of $2,800,000. if Safeway has 175,000 shares outstanding with a current market price of $21 per share, what is the required rate of return?
At year end, Sampson Company's balance sheet showed total assets of
$80 million, total liabilities of $50 million, and 1,000,000 shares of
common stock outstanding. Next year, Malta is projecting that it will have
net income of $2.9 million. If the average P/E multiple in Malta's industry
is 16, (and this is an average stock) what should be the price of Sampson's
stock?
O $50.43
O $46.40
O $44.57
O $41.60
Chapter 3 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 3 - If we divide users of ratios into short-term...Ch. 3 - Explain how the Du Pont system of analysis breaks...Ch. 3 - If the accounts receivable turnover ratio is...Ch. 3 - Prob. 4DQCh. 3 - Is there any validity in rule-of-thumb ratios for...Ch. 3 - Why is trend analysis helpful in analyzing ratios?...Ch. 3 - Inflation can have significant effects on income...Ch. 3 - What effect will disinflation following a highly...Ch. 3 - Why might disinflation prove favorable to...Ch. 3 - Comparisons of income can be very difficult for...
Ch. 3 - Low Carb Diet Supplement Inc. has two divisions....Ch. 3 - Database Systems is considering expansion into a...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Dr. Zhivà€go Diagnostics Corp.’s income...Ch. 3 - The Haines Corp. shows the following financial...Ch. 3 - Easter Egg and Poultry Company has $2,000,000 in...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Baker Oats had an asset turnover of 1.6 times per...Ch. 3 - AllState Trucking Co. has the following ratios...Ch. 3 - Front Beam Lighting Company has the following...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Jerry Rice and Grain Stores has $4,780,000 in...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Jim Short’s Company makes clothing for schools....Ch. 3 - The balance sheet for Stud Clothiers is shown...Ch. 3 - The Lancaster Corporation’s income statement is...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - The Global Products Corporation has three...Ch. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - The following information is from Harrelson...Ch. 3 - Using the financial statements for the Snider...Ch. 3 - Given the financial statements for Jones...Ch. 3 - Prob. 2WE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)arrow_forwardHelparrow_forwardA company’s stock price is $50 per share. The company has $15 billion in total assets. Its balance sheet shows $2 billion in current liabilities, $3.5 billion in long-term debt, and $5 billion in common equity. It has 750 million shares of common stock outstanding. What is the book value per share? What is the market/book ratio?arrow_forward
- FFDP Corporation has yearly sales of $29.9 million and costs of $15.7 million. The company’s balance sheet shows debt of $55.9 million and cash of $39.9 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 9.4. a. What is the company’s enterprise value? b. What is the stock price per share?arrow_forwardFor the next fiscal year, you forecast net income of $48,100 and ending assets of $504,000. Your firm's payout ratio is 9.6%. Your beginning stockholders' equity is $298,000 and your beginning total liabilities are $119,700. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,700. Assume your beginning debt is $109,800. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt- equity ratio constant? Please show work. The amount of equity to issue will be... The amount of debt to issue will be...arrow_forwardFancy Paws' year-end price on its common stock is $20. The firm has a profit margin of 12 percent, total assets of $20 million, a total asset turnover ratio of 0.5, no preferred stock, and there are 2 million shares of common stock outstanding. What is the PE ratio for Fancy Paws?arrow_forward
- For the next fiscal year, you forecast net income of $49,400 and ending assets of 506,900. Your firm's payout ratio is 10.6 %. Your beginning stockholders' equity is $299,600, and your beginning total liabilities are $128,200. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $108,200. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?arrow_forwardFor the next fiscal year, you forecast net income of $51,300 and ending assets of $505,400. Your firm's payout ratio is 9.9%. Your beginning stockholders' equity is $299,200 and your beginning total liabilities are $120,500. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. Assume your beginning debt is $104,400. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The amount of equity to issue will be $ 9,898. (Round to the nearest dollar.) The amount of debt to issue will be $. (Round to the nearest dollar.)arrow_forwardFor the next fiscal year, you forecast net income of $49,000 and ending assets of $509,300. Your firm's payout ratio is 10.8%. Your beginning stockholders' equity is $299,600, and your beginning total liabilities are $129,500. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,200. Assume your beginning debt is $109,500. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The amount of debt to issue will be $ (Round to the nearest dollar.)arrow_forward
- For the next fiscal year, you forecast net income of $49,600 and ending assets of $505,800. Your firm's payout ratio is 10.2%. Your beginning stockholders' equity is $297,500, and your beginning total liabilities are $126,800. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,200. Assume your beginning debt is $106,800. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The amount of debt to issue will be $ The amount of equity to issue will be $ CO (Round to the nearest dollar.) (Round to the nearest dollar.)arrow_forwardJanlea Co. had total net earnings of $158,600 this past year and paid out 60 percent of those earnings in dividends. There are 84,000 shares of stock outstanding at a current market price of $18.43 a share. If the dividend growth rate is 2.8 percent, what is the required rate of return?arrow_forwardEdelman engines has $18 million in total assets. It’s balance sheet shows $2 million in current liabilities $10 million in long term debt and $6 million in common equity. It has 300000 common shares outstanding and it’s stock price is $28.20 per share. What is edelmans market / book ratioarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License