The return on equity is calculated using which of the following formulas? Multiple Cholce Net Income - Common Stock Net Income + Retalned earnings Net Income + Stockholders' equity Net Income + Average stockholders' equity

Q: Name the two main components of stockholders’ equity. Describe the main sources of change in each…

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are…

Q: The following are investor ‘ratios except:   EPS P/E Ratio Dividend cover ROCE

A: Investor ratios are the financial ratios that the investors use in order to evaluate the company's…

Q: Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as: O A…

A: The cumulative preference shareholders have the right to receive any arrears of dividend also.

Q: In a balance sheet, the total of common stock and retained earnings are denoted as Select one: a.…

A: Equity means the amount which is due to the owner of the company i.e. common stock in case of…

Q: calculate the: -after-tax cost of debt -the cost of preferred stock -the cost of equity from…

A: A combination of long-term debts and different types of stocks to raise funds for the business…

Q: Which of the following would appear first in a statement of retained earnings?  a. Net income b.…

A: The ending balance of retained earnings can be calculated by adding net income and deducting…

Q: Calculate Ebanks, Inc.'s margin and net income. h. Çalculate Ebanks, Inc.'s return on а. equity.

A: Step 1 Calculation of net income: Calculation of Margin:

Q: Dividends paid per common share divided by the market price per common share produces the: Select…

A: Dividends are a part of net income that are paid to the shareholder of the company in the form of…

Q: leverage ratio is equal to average total …… divided by average…… Select one: a. assets; common…

A: Solution: leverage ratio = Average total debt / Average total common stpckholders' equity therefore,…

Q: Return on equity…… Select one: a. is calculated by dividing net income plus preferred dividends by…

A: Introduction: Preferred shares: Preferred share holders receive preferred dividend before…

Q: How do I calculate the price / earnings ratio, earnings per common share, and dividend payout?

A: Price/ Earnings ratio: Price Earnings ratio is the ratio of firm’s present share price to its…

Q: ulation of earnings available for common stockholders divided by common stock equity?

A: Shareholder Equity is the sum of Share capital and Shareholder funds ( Reserves and Surplus) . So it…

Q: Income Statement Stmt of Stockholders Balance Sheet Equity

A: Finalisation of Accounts It  prepares  profitability statement and balance sheet at the end of that…

Q: How does the return on common equity show the relationship between net income and the common…

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: The two basic sources of stockholders’ equity are assets and equity. preferred and common. retained…

A: Stockholder’s equity:It represents the amount of investment made by the owner in the business.

Q: Assuming yourself to be Anna, narrate what you would have read in the file. Your narrative should…

A: The required return on equity is the cost of the equity money that is also the expected return of…

Q: What are the formulas used to get the answer in dividens, addition to retained earnings, short-term…

A:

Q: What does the statement of stockholders’ equity report? How does the statement of stockholders’…

A: A financial statement is the complete record of financial transactions that take place in a company…

Q: Define each of the following terms:b. Common stockholders’ equity, or net worth; retained earnings

A: Common stockholders' equity or net worth: Common stockholders' equity or net worth is the capital…

Q: EPS is computed by dividing net income by the average number of shares outstanding.  True  False

A: Earnings per share(EPS) refers to an indicator or a financial ratio that shows how much a company is…

Q: What is the formula for the Debt to Earnings Ratio? (Assume Preferred Stock Dividends)

A: a. Debt to earnings Ratio - This ratio is indicates the monthly income generated to pay its…

Q: The two basic sources of stockholders’ equity are a. assets and equity. b. preferred and common. c.…

A: Stockholder's equity refers to the amount shown for assets after paying all the liabilities and…

Q: In its most basic form, the Earnings per Share (EPS) ratio is calculated as: Net income divided by…

A: EPS = earnings per share .

Q: Based on the balance sheet, Is the market price of the company’s stock going up or down? Explain.

A: Market price of the stock depends upon dividend, growth rate and required rate of return

Q: a. The rate earned on stockholders' equity % b. The rate earned on common stockholders' equity

A: Rate earned on stockholder’s equity and rate earned on common stockholders are the accounting…

Q: Using the data above, calculate the following: • Cost of common equity using retained earnings •…

A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in…

Q: Identify the three primary components of return on common stockholders 'equity.

A: Return on equity:   It is a measure of the financial performance of a company relating to their…

Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…

A: a. When return on total assets is considered, interest expense is added to the net income and…

Q: The two main sources of stockholders' equity are investments by stockholders and dividends pald 9net…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Stockholders' equity consists of paid-in (or contributed) capital and retained earnings. True or…

A: The stockholder's equity is the remaining amount of assets after paying out its total liabilities.…

Q: The effect of a stock dividend is to change the composition of stockholders' equity. decrease total…

A: The stock dividend is a method of capitalizing the retained earnings. Generally, the large stock…

Q: The return on equity ratio equals net income divided by common stock. True or False

A: In the context of the given question, we are required to comment that the statement is true or…

Q: the ratio of dividends per share to earnings per share is known as the dividends yield

A: The dividend is the portion of earnings that is distributed to the stockholders of the company. When…

Q: The ____________________per share is the amount of income attributable to each share ofcommon…

A: answer: a. earnings

Q: Stockholders' equity consists of which of the following? Multiple Choice O O Paid-in (or…

A: Stockholders' equity=Paid in capital+Retained earnings

Q: What does the P/E ratio measure? C . Th e earnings for one common share of stock.

A: Pe ratio = share price/ earning per share The PE ratio is the ratio of a company's share  price to…

Q: Assume you are given the following abbreviated financial statement.       (look at the picture sent)…

A: Current Assets = 150 Current Liabilities = 100 Equity = 200 Long Term Debt = 50 Number of shares…

Q: Stock and dividend returns can be shown in percentage, dollar, and per-share values. True or Fals

A: stocks return: these are the return that the firm gives to the equity holders.

Q: Required: Calculate the net income earned during the year. Assume that the change to stockholders'…

A: If change in stockholder's equity is only due to change in net income, then Net Income is calculated…

Q: How would I calculate net income if given the accounts of Cash, AR, Inventory, Investments, AP,…

A: We know that the total of assets is equal to the total of liabilities. We can use this information…

Q: Which of the following statements about stock dividendsis true?a. Stock dividends are reported on…

A: Stock dividends: It can be defined as the payment of dividends to the shareholders in the form of…

Q: Contrast the effects of a cash dividend and a stock dividend on total assets, total liabilities, and…

A: The dividends are the income of the shareholders on their shareholdings in the company.

Q: When recording dividends received from a stock investment accounted for using the equity method,…

A: The question is multiple choice question. Required  Choose the Correct Option.