Q: Return on Capiatal employed = O a. Return on Total Assets O b. Return on Equity Oc. Return on…
A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…
Q: What is the difference between total assets and total liabilities? a) Dividend b) Bond sinking…
A: Balance sheet has two parts ASSETS and LIABILITIES
Q: What is the balance in the capital dividend accbu
A: Opening 150,000 Add: capital gain 50,000 Less: allowable loss 30,000 Add: dividend received 35,000…
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: What are the formulas used to get the answer in dividens, addition to retained earnings, short-term…
A:
Q: When computing the weighted average cost of capital, which of these are adjusted for taxes? OCost of…
A: WACC or weighted average cost of Capital, it determines the cost associated with each part of…
Q: Calculate RETURNED ON INVESTED CAPITAL by referring the pictures of Financial Position and Statement…
A: Please see the next step for the solution
Q: Calculate Ndovu plc’s weighted average cost of capital, based on the CAPM computed cost of equity.…
A: Weighted Average Cost of Capital is the cost of capital of the companies considered the cost of all…
Q: When liabilites increase and stock holder equity decreases, what is the total assets? shouldn't it…
A: According to the accounting equation, the total of liabilities and the stockholder equity is the…
Q: Capital gearing ratio indicates the relationship between A. assets and capital B. loans and…
A: Capital gearing ratio: Capital gearing ratio refers to the tool to analyze the capital structure of…
Q: how are paid in capital an retained earnings similar
A: Capital: Capital is the portion of investment done by the owners of the company as Paid-in capital.…
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: Define the terms paid-in capital and retained earnings.
A: Paid in capital: Paid in capital represents the total amount invested by the shareholders of the…
Q: Write Example for equity dividend?
A: Answer: Equity dividend is the dividend that is paid to equity shareholders.
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: how is additional paid-in capital and common stock figures calculated
A: Additional Paid in Capital - $25,000 is the stock issue costs as given in the Question
Q: or the ratio return on capital employed which of the following best describes capital employed : a-…
A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…
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: Which of the following will result when a dividend is paid? A debit to dividends payable. A credit…
A: Concept used : When dividend is paid then journal entry will be to debit the dividend payable and…
Q: Dividends representing a return of invested capital is known as a. stock dividend b. scrip dividend…
A: Dividends are paid to the investors by the company out of profit of the company. They are paid to…
Q: For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a…
A: For available-for-sale equity securities, receipt of a cash dividend would be reported as Dividend…
Q: NPAT Less prefernce dividend is used in O a. Return on Equity O b. Return on Equity share…
A: A financial ratio is one of the important tools for analyzing a company’s financial statement. There…
Q: Define the following. a. Retained earnings? b. Goodwill? c. Investing activities?
A: a. Retained earnings: The amount of earnings undistributed as dividends to the stockholders is…
Q: What is the statement of equity under paid-in capital?
A: Meaning of Paid-in capital:Paid-in capital represents the funds raised by the business through…
Q: Define the term Return on Common Equity? How does it measure profitability?
A:
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: Cost of equity can be calculated using the SML approach or the dividend discount models. True or…
A: Cost of equity is the return that the company pays to its shareholders in exchange for providing the…
Q: Calculate: -cost of common equity from retained earnings, using the CAPM method. - cost of new…
A: Capital Asset Pricing Model (CAPM): The Capital Asset Pricing Model (CAPM) is used to price an asset…
Q: Do you add or subtract total retained earnings with paid in capital when accounting stock?
A: 1. Retained Earnings - Retained Earnings is the retained accumulated profit of the company over the…
Q: Which one of the following is referred as Equity finance? O a. Sale of money market instruments O b.…
A: Equity refers to the amount which is being invested or owned by shareholders means the owner of the…
Q: Describe how the following factors affect external capitalrequirements: (1) payout ratio, (2)…
A: The funds which are raised externally i.e from outside sources is called external financing. The…
Q: Which of the following may take the form of dividend income and/or capital appreciation? a. bond…
A: Dividend means amount of income that is generated and distributed to the shareholders. Capital…
Q: In the application of the equity method, how should dividends from the investee be accounted for?…
A: Equity method: Equity method is the accounting method used for accounting equity investments which…
Q: Return on equity measure expected rate on investment of : Equity Assets and equity Both of above
A: Lets understand the meaning of return on equity. Return on equity indicates the how much net income…
Q: How is the realised percentage return from investing in a share calculated? A. The cash flows…
A: Realized percentage return is the return which the investors gets over a period after considering al…
Q: What is reflected in the additional paid-in capital account?Required to answer. Single choice.…
A: Additional paid in capital is shown in EQUITY SECTION in balance sheet liabilities side
Q: Question Capital structure refers to how the firm finances its operations and growth through a…
A: Capital structure is the proportion of capital from different sources of finance in the total…
Q: What is a “dividend return” and a “capital gain,” and how do these terms enterthe arbitrage equation…
A: The Arbitrage pricing equation is E(Ri) = E(Rf) +Beta * [E(I)-E(Rf)] E(Ri) is the return on the…
Q: Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated…
A: a. Sinking fund is a long term asset and included in the company's Balance sheet as Non current…
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.
a)
b) return on assests
c) return on capital
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Total assets Total stockholders' equity Current liabilities Target Corporation Income Statement Data for Year $65,357 45,583 15,101 707 (94) 1,384 $ 2,488 $18,424 26,109 Balance Sheet Data (End of Year) $44,533 $11,327 17,859 15,347 Walmart Inc. $44,533 $408,214 304,657 79,607 10,512 2,065 (411) 7,139 $ 14,335 $48,331 122,375 $170,706 $55,561 44,089 71,056 $170,706 Beginning-of-Year Balances $44,106 13,712 $163,429 65,682 55,390Required information [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 431,313 $ 330,421 259,650 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes. Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets 171,663 61,246 38,818 100,064 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 209,156 121,265 KORBIN COMPANY Comparative Balance Sheets 71,599 13,317 $ 58,282 $ 37,039 2021 45,598 29,077 74,675 46,590 9,551 $ 54,729 0 103,218 $ 157,947 $ 2019 229,300 146,752 82,548 30,268 19,032 49,300 33,248 6,749 $ 26,499 $ 19,550 71,000 8,875 31,781 2019 2020 $36,630 $ 48,966 700 93,876 $131,206 $ 108,704 4,660 55,078 $ 19,023…Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 14,100 Cost of goods sold 4,560 Other expenses 4,217 Depreciation 2,818 Earnings before interest and taxes (EBIT) $ 2,505 Interest expense 735 Income before tax $ 1,770 Taxes (at 30%) 531 Net income $ 1,239 Dividends $ 976 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 99 $ 168 Receivables 2,882 2,690 Inventories 237 288 Other current assets 917 982 Total current assets $ 4,135 $ 4,128 Net property, plant, and equipment 20,073 20,015 Other long-term assets 4,316 3,870 Total assets $ 28,524 $ 28,013 Liabilities and shareholders’ equity Payables $ 2,664 $ 3,140 Short-term debt 1,469 1,623 Other current…
- The following data were abstracted from the records of Ballistic Corporation for the year: Sales 1,080,000 Interest expense 75,000 Income taxes 240,000 Net income 360,000 Compute interest coverage ratio.Rousseau Corporation has the following Statement of Income for the year ended May 31, 2020: Sales... $1,675,200 Cost of goods sold.. 887,600 Gross margin... 787,600 Selling & administrative expense.. 241,200 Interest expense. 65,000 Income before income taxes. 481,400 192,500 $288,900 Income taxes.. Net income.... Calculate the interest-coverage ratio for Rousseau Corporation for May31, 2020 (place answer at up to 2 decimal places in the space below). 신Here are simplified financial statements for Watervan Corporation: INCOME STATEΜΕNT (Figures in $ millions) Net sales $884.00 Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense 744.00 34.00 $106.00 15.00 Income before tax $ 91.00 Тахes 19.11 Net income $ 71.89 BALANCE SHEET (Figures in $ millions) End of Start Year of Year Assets Current assets $ 372 $ 318 Long-term assets 264 225 Total assets $ 636 $ 543 Liabilities and shareholders' equity Current liabilities $ 197 $ 160 Long-term debt Shareholders' equity 111 124 328 259 Total liabilities and shareholders' equity $ 636 $ 543 The company's cost of capital is 8.5%. a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the company's return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2…
- Given the following Balance Sheet and Income Statement information Balance Sheet $1,338,185 Total Liabilities: $549,219 Total Assets: Income Statement Earnings Before Income Tax: $211,636 Income Tax Expense: What is the Return on Equity? $42.717Profitability ratiosThe following selected data were taken from the financial statements ofVidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: 20Y7 20Y6 20Y5 Total Assests $4,800,000 $4,400,000 $4,000,000 Notes payable (8% interest) 250,0000 2,250,000 2,250,000 Common stock 250,000 250,000 250,000 Preferred 4% stock, $100 par (no change during year) 500,000 500,000 500,000 Retained earnings 1,574,000 1,222,000 750,000 The 20Y7 net income was $372,000, and the 20Y6 net income was$492,000. No dividends on common stock were declared between 20Y5and 2017. Preferred dividends were declared and paid in full in 2016 and20Y7. A. Determine the return on total assets, the rate earned onstockholders' equity, and the return on common stockholders'equity for the years 2016 and 2017. (Round percentages to one decimal place.)B. What conclusions can be drawn from these data as to thecompany's profitability?Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,100 Cost of goods sold 4,010 Other expenses 4,042 Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax 2,488 $ 2,560 680 Taxes (at 21%) $ 1,880 395 Net income Dividends $ 1,485 $ 866 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Net property, plant, and equipment Other long-term assets Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Calculate the following financial ratios for Phone Corporation: $ 88 2,332 182 862 $ 3,464 19,963 4,206 $ 27,633 $ 2,554 1,414 806 $ 4,774 $ 157 2,470 233 927 $ 3,787 19,905 3,760 $…
- Here are simplified financial statements for Phone Corporation in 2020: Net sales Cost of goods sold Other expenses INCOME STATEMENT (Figures in $ millions) Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 21%) Net income Dividends Assets Cash and marketable securities Receivables Inventories Other current assets BALANCE SHEET (Figures in $ millions) Total current assets Net property, plant, and equipment Other long-term assets. Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 13,600 4,310 4,162 2,668 $2,460 718 $1,750 368 a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) c. Return on capital (use average balance sheet figures) d. Days in inventory (use start-of-year balance sheet…Here are simplified financial statements for Phone Corporation in 2020: Net sales Cost of goods sold other expenses INCOME STATEMENT (Figures in $ millions) Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes (at 21%) Net income Dividends Assets cash and marketable securities Receivables Inventories other current assets BALANCE SHEET (Figures in $ millions) Total current assets Net property, plant, and equipment other long-term assets Total assets Liabilities and shareholders' equity Payables short-term debt other current liabilities Total current liabilities Long-term debt and leases other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 12,400 3,660 4,137 2,278 $ 2,325 645 a. Return on equity (use average balance sheet figures) b. Return on assets (use average balance sheet figures) $ 1,680 353 $ 1,327 $ 796 j. Times interest earned k. Cash coverage ratio 1. Current ratio (use end-of-year balance sheet…Here are simplified financial statements for Phone Corporation in a recent year: INCOME STATEMENT (Figures in $ millions) Net sales $ 13,600 Cost of goods sold 4,310 Other expenses 4,162 Depreciation 2,668 Earnings before interest and taxes (EBIT) $ 2,460 Interest expense 710 Income before tax $ 1,750 Taxes (at 30%) 525 Net income $ 1,225 Dividends $ 906 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 94 $ 163 Receivables 2,632 2,590 Inventories 212 263 Other current assets 892 957 Total current assets $ 3,830 $ 3,973 Net property, plant, and equipment 20,023 19,965 Other long-term assets 4,266 3,820 Total assets $ 28,119 $ 27,758 Liabilities and shareholders’ equity Payables $ 2,614 $ 3,090 Short-term debt 1,444 1,598 Other current…