Assume the following data for Cable Corporation and Multi-Media Incorporated.Net incomeSalesTotal assetsTotal debtStockholders' equityCableCorporation$ 34,400364,000448,000237,000211,000Cable CorporationMulti-Media, Incorporateda. 1. Compute return on stockholders' equity for both firms.Note: Input your answers as a percent rounded to 2 decimal places.Return onStockholders'EquityMulti-MediaIncorporated$ 128,0002,700,000%%970,000468,000502,000 2. Which firm has the higher return?O Cable CorporationO Multi-Media Incorporatedb. Compute the following additional ratios for both firms.Note: Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimaplaces. Round your Sales/Total assets answers to 2 decimal places.Net income/SalesNet income/Total assetsSales/Total assetsDebt/Total assetsCable Corporation%%times%Multi-Media Incorporated%%times%

Return on Equity: ROE is a measure of profitability used in the ratio analysis of firms. It is…

Answered: a. 1. Compute return on stockholders'…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Pet Boutique Corp. reported $4,549,230 of profit for 2023. On November 2, 2023, it declared and paid the annual preferred dividends of $261,880. On January 1, 2023, Pet Boutique had 73,500 and 567.000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend.. Apr.30 Sold 119,130 common shares for cash. Sold 49,410 preferred shares for cash. Sold 37,800 common shares for cash. May 1 Oct. 31 a. What is the amount of profit available for distribution to the common shareholders? Earnings available to common shareholders b. What is the weighted average number of common shares for the year? Weighted average outstanding shares
Aquaman Stock has exhibited a standard deviation in share returns of 0.4, whereas Green Lantern Stock has exhibited a standard deviation of 0.3. The correlation coefficient between the share returns is 0.4. What is the standard deviation of a portfolio composed of 60 per cent Aquaman and 40 per cent Green Lantern?
Bhupatbhai
The account which increases equity is known as? A. Debit Account B. Credit Account C. Revenue D. Treasury Stock
14) Consider the following 2 tables in Database: Investor and Positions with respective columns. Investor InvestorID InvestorName Country *Assume there is a primary key on InvestorID Positions StockSymbol InvestorID ReportingDate Qty *Assume there is a primary key on StockSymbol, InvestorID, Reportingdate Positions means Stock holdings. Write a queries to a) Find all investors that have positions in more than one stocks on any reporting date. b) Output investors with their positions (they have ever had) and respective dates when they acquired those positions c) Investors that never had a position
Required Indicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1 (Indicate the effect of each transaction by selecting "+" for increase, "-"for decrease, and leave the cell blank if there is no effect.). a. Collected account receivable. b. Wrote off account receivable. c. Converted a short-term note payable to a long-term note payable. d. Purchased inventory on account. e. Declared cash dividend f. Sold merchandise on account at a profit. g. Issued stock dividend h. Paid account payable. i. Sold building at a loss. Retained Value Earnings Current Working Stockholders Book Ratio Capital Equity
Identify the term being referred to: An example of this dividend policy is when dividend of P1 per share is paid during the first three quarters and P3 per share is paid during the fourth quarter. *
1. Stock exchanges want to be sure that investors have enough information toSelect one:a. Increase a company’s performance and prospectsb. Evaluate a company’s performance and prospectsc. Decrease a company’s performance and prospectsd. Evaluate a company’s assets and liabilities
Coronado Corporation had net income for the current year ending December 31, 2023 of $1,164,700. Throughout 2023 the following items were outstanding: ● ● ● 394,000 common shares 20,500 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 50,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of 1 common share for every 2 preferred shares. $476,000, 8% bonds that were convertible to 14,000 common shares $360,000, 10% bonds convertible to 12,000 common shares No dividends were declared or paid in 2023. Coronado's tax rate is 25%.
Match (by letter) the following terms with their definitions. Each letter is used only once.Terms_____ 1. PE ratio._____ 2. Stockholders’ equity section of the balance sheet._____ 3. Accumulated deficit._____ 4. Growth stocks._____ 5. 100% stock dividend._____ 6. Statement of stockholders’ equity._____ 7. Treasury stock._____ 8. Value stocks._____ 9. Return on equity._____ 10. Retained earnings.Definitionsa. A debit balance in Retained Earnings.b. Priced high in relation to current earnings as investors expect future earnings to be higher.c. Effectively the same as a 2-for-1 stock split.d. The earnings not paid out in dividends.e. The stock price divided by earnings per share.f. Summarizes the changes in the balance in each stockholders’ equity account over a period of time.g. Priced low in relation to current earnings.h. Measures the ability of company management to generate earnings from the resources that owners provide.i. Shows the balance in each equity account at a point in…
What is the total percentage return for an investor who purchased a stock for $8.01, received $2.02in dividend payments, and sold the stock for $9.14? Please write your answers as a percentage (e.g. .1234 should be written as 12.34)

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a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places.