12. Zara Co. has a total common equity at the end of last year of $810,000素and its net income was $140,000. What was its ROE?O a) 14.82%O b) 15.60%O c) 16.42%O d) 17.28%e) None of the above 11. What's the present value of a perpetuity that pays $300 per year if theinterest rate Is 8%?*O a) $3,250O b) $3,440O c) $3,750O d) $3,960e) None of the above

Note: “Since you have asked multiple questions, I will solve the first question for you. If you want…

Answered: 12. Zara Co. has a total common equity…

12. Zara Co. has a total common equity at the end of last year of $810,000 and its net income was $140,000. What was its ROE? Oa) 14.82% O b) 15.60% O c) 16.42% O d) 17.28% e) None of the above

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 17PROB

See similar textbooks

Related questions

Q: In its most recent financial statement, Robredo , Inc. reported P50,000,000 of net income and…

A: Dividends refer to the distribution of any portion of the profits or any surplus of the company…

Q: The previous year&#39;s balance sheet for Brown&#39;s Produce showed total common equity of…

A: Given information: Previous year’s common equity is $4,050,000 Net income during the year is…

Q: At the end of accounting period, Callaway had $12,000 of common stock, paid in capital in excess par…

A: >Total Stockholder's equity is a section of Balance Sheet, and a part of accounting equation.…

Q: The Harbinger Corporation reported net income of $6 million and total assets of $7 million in its…

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: Gilmore, Inc., had equity of $215,000 at the beginning of the year. At the end of the year, the…

A: The maximum growth which a firm can achieve by using internal resources and fund is known as…

Q: Cersie Inc.'s latest EPS was 3.50, its book value per share was 22.75, it had 215,000 shares…

A: EPS = 3.5 Book Value per share = 22.75 Shares Outstanding = 215,000 Debt ratio = 46%

Q: A company has 10,000 equity shares outstanding throughout the year (there have been no share…

A: Basic and diluted EPS: The EPS or Earnings Per Share is a function of the net income earned by a…

Q: At the beginning of the current year, Soron Corporation had 200,000 shares of $1 par common stock…

A: Retained earnings are the amount which was retained by the company after all of its expenses…

Q: At the beginning of the year, the net assets of Shannon Co. were $617,900. The only transactions…

A: We know that Return on Equity = ( Net Income /Average shareholders equity) Net Assets = Total Assets…

Q: The following information pertains to Marsh Company for the current! year: Average total assets,…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Makers Corp. had additions to retained earnings for the year just ended of $213,000. The firm paid…

A: Earnings per share : Earnings per share are calculated based on the companies year ending profit and…

Q: For 2009, Flamingo Products had net income of $1,000,000. At 1 January 2009, there were 1,000,000…

A: Net income for 2009 =$1,000,000 1 January 2009 No. of shares outstanding=1,000,000 i July 2009…

Q: The balance sheets at the end of each of the first two years of operations indicate the following:…

A: Determine number of common shares outstanding and preferred dividend.

Q: Firm L had net assets at the end of the year of $415,000. The only transactions affecting…

A: The return on shareholders equity is calculated as net income divided by average shareholders'…

Q: Gilmore, Inc., had equity of $130,000 at the beginning of the year. At the end of the year, the…

A: The maximum growth which a firm can achieve by using undistributed earnings is known as internal…

Q: Wildhorse Co. started the year with $64800 in its Common Stock account and a credit balance in…

A: Retained Earnings is the part of Net Income left over for the business after dividend payments to…

Q: At the beginning of the current year, Wilson Corporation had 200,000 shares of 1$ par common stock…

A: Retained earnings: These are the residual earnings with the company that are used either for…

Q: The following is the excerpt of financial information of Dreamies Corporation on December 31, 2022:…

A: Solution:- Return on Equity (ROE) means the percentage of net income earned on the shareholder's…

Q: EBIT is ₹ 50,00,000.00 Debt Outstanding ₹ 25,00,000.00 Rate Of Interest On Debt Is 12% Cost Of…

A: Earning per share: Earning per share helps to ascertain the market price of the equity shares of the…

Q: Makers Corp. had additions to retained earnings for the year just ended of $415,000. The firm paid…

A: The question has 6 sub-parts to be answered. As per guidelines, we must answer first two sub-parts…

Q: Ullrich Printing Inc. paid out $20,850 of common dividends during the year. It ended the year with…

A: Net income = Dividend Paid + Increase in retain earnings

Q: National Company's net income last year was P75,000. The company paid preferred dividends of P12,000…

A: Return on common stockholders equity means net earnings earned on the investment made by common…

Q: The average stockholder's equity for Stan Company was P 2M. Included in this figure is P 200,000 par…

A: At the time of distribution of profits, preference stockholders are given preference over the…

Q: Net income for the period totaled OMR75,000, preferred dividends paid totaled OMR10,000, and common…

A: It is pertinent to note that preferred dividends are paid in prior to dividends to be paid to common…

Q: 12. Zara Co. has a total common equity at the end of last year of $810,000 and its net income was…

A: ROE = net income / total equity

Q: On 12/31/18, Hite Industries reported retained earnings of $475,000 on its balance sheet, and it…

A: Closing Retained Earnings = Opening Retained Earnings + Net Income during the year - Dividends paid…

Q: KJ Inc. just reported a net income of 630 in its most recent year and paid a dividend of 390. If the…

A: Ending Balance of Retained Earnings = Beginning Balance + Net Income - Dividend

Q: On December 31, Sulfur Corporation has the following data available: Net income $100,000…

A: Leverage Ratio :— It is the financial indicator to measure ability to pay future financial…

Q: A company has 588,000 shares of $10 par value common stock outstanding. During the year, the company…

A: No. of common stock issued under stock dividend = No. of common stock outstanding x 13% = 588,000…

Q: Last year Kendall Enterprises (KE) had earnings per share of $5 and dividends per share of $2. Total…

A: Here, Earning Per Share is $5 Dividend Per Share is $2 Increase in Retained Earnings is $12 million…

Q: For 2009, Flamingo Products had net income of $1,000,000. At 1 January 2009, there were 1,000,000…

A: The earning per share is the monetary value of earnings earned by the company in comparison to the…

Q: If the stock currently sells for $77 per share, what is the market-to-book ratio? Makers Corp. had…

A: Market to book ratio = Market price / Book value per share

Q: A company had total revenues of $62 million, operating margin of 38.4%, and depreciation and…

A: EV/EBITDA is the ratio between enterprise value and earnings before interest, taxes, depreciation…

Q: During the last year, Sigma Co had Net Income of $153, paid $17 in dividends, and sold new stock for…

A: given, net income=$153 dividend=$17 sold new stock =$38 beginning equity = $630

Q: At the end of last year, ArtisanCo's assets totaled $877,000 and its liabilities totaled $748,500.…

A: Ending total assets = Beginning total assets + increase in total assets = $877,000 + $59,700 =…

Q: Zero Corp's total common equity at the end of last year was $430,000 and its net income was $70,000.…

A: ROE or Return-on-Equity is profitability ratio that shows profit available to equity holders in…

Q: Livestone Company's net income last year was P371,000. The company has 100,000 shares of common…

A: Earning per share is calculated to determine the earnings available for the common stockholders from…

Q: Gilmore, Inc., had equity of $175,000 at the beginning of the year. At the end of the year, the…

A: Excel Spreadsheet: Excel Workings:

Q: Landisville Company started the year with $60000 in its Common Stock account and a credit balance in…

A: Formula: Ending retained Earnings = Beginning Retained Earnings + Net income - Dividends paid

Q: A company's operating income (EBIT) for the year is OMR 200,000 and it has 5% Bonds of OMR 400,000.…

A: Net Income Approach EBIT xxx…

Q: J.C. Olson & Co. had earnings per share of $8 in 2012, and it paid a $4 dividend. Book value per…

A: Retained earnings is part of profit which is retained by the company for future use. This part of…

Q: Electronic world inc paid out $24 million in total common dividends and reported $255.6 million of…

A: Net Income of a company is derived after deducting all the cost or expenses of the company along…

Q: A company had total revenues of $42 million, operating margin of 20.2%, and depreciation and…

A: EV means enterprise value and EBITDA is earnings before interest, taxes, depreciation and…

Q: At the beginning of the year, ABC Company had a retained earnings balance of $100,000. During the…

A: Retained earnings are that portion of net income that is not distributed to the shareholders by the…

Q: At the end of the accounting period, Houston Company had $8,000 of par value common stock issued,…

A: Stockholders equity include common stock, retained earning but does not include treasury stock.

Q: Sunland Systems had net income of $4.455 billion and, at year end, 5.500 billion shares outstanding.…

A: Calculate the earnings per share as follows: Earning per share = Net income / No. of equity shares

Q: Walter Mart has net assets of P3,358,000 after liabilities of P1,267,000 at the end of the year.…

A: Solution: Walter mart's equity at year end = Total assets - Total liabilities

Question

12. Zara Co. has a total common equity at the end of last year of $810,000
素
and its net income was $140,000. What was its ROE?
O a) 14.82%
O b) 15.60%
O c) 16.42%
O d) 17.28%
e) None of the above

11. What's the present value of a perpetuity that pays $300 per year if the
interest rate Is 8%?*
O a) $3,250
O b) $3,440
O c) $3,750
O d) $3,960
e) None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.