Answered: Dale Corporation has the following…

Dale Corporation has the following data: Dale’s rate of return on common stockholders’ equity is a. 24% b. 50% c. 12% d. 36%

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 10BE: A company reports the following: Determine (a) the return on stockholders equity and (b) the return...

See similar textbooks

Related questions

Q: Consider the following data: Common stock ($1 par value) Capital surplus Retained earnings TOTAL…

A: Number of Common Stock ($400000 / $1) 400000 Stock Dividend (400000 shares * 10%) 40000 Current…

Q: For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average…

A: Return on common stockholders' equity indicates the rate of earning of commons stockholders on their…

Q: One company had a stock price of $45 per share, earnings per share of $0.75, and dividends per share…

A: In this question we require to compute the price/earnings ratio of company.

Q: Markus Company’s common stock sold for $2.75 per share at the end of this year. The company paid a…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: he following information is available for Evans Corporation: 2021…

A: Solution: Return on common stockholder's equity = (Net Income -Preferred dividends) / average…

Q: XYZ comm

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: Please use the 2018 data for Johnson and Johnson (JNJ) presented below (All numbers in millions…

A: The perpetual growth model is Gorden Model. As per gorden the current price of share will be…

Q: Compute the Values of an equity share and of preference share of each of the following companies:…

A: The question is related to Valuation of Shares. The details of two companies A and B are given.

Q: A company has an EPS of $2.40, a book value per share of $21.84,and a market/book ratio of 2.73.…

A: EPS= $2.40 Book value per share = $21.84 Market / book ratio = 2.73 P/E ratio = price/ earnings

Q: If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed…

A: PE Ratio = Share Price / EPS

Q: You are given the following information: Stockholders’ equity !$3.75 billion, price/earnings ratio !…

A: Given that:Stockholders’ equity (in balance sheet) is $3.75 billion or $3750 MillionCommon shares…

Q: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Q: a. Calculate Everdeen's earnings per share (EPS). b. If the firm paid common stock dividends of…

A: Earnings Per Share (EPS): It is the earnings available for the equity shareholders for every common…

Q: Sportplace’s net income for the period is $119,600 and its average common stockholders’ equity is…

A: Given information is: Sportplace’s net income for the period is $119,600 and its average common…

Q: The following figures are collected from the annual report of XYZ Ltd.: Net Profit 30 lakhs…

A: Dividend represents the amount, which organization gave to shareholders in compensation for their…

Q: Earnings per share is the . A) price per share divided by the earnings per share B) net income…

A: Earnings per share is used to measure income earned per share.

Q: Ultra Petroleum (UPL) has earnings per share of $1.56 and a P/E ratio of 32.48. What's the stock…

A: The provided information are: Earning per share = $1.56 P/E ratio = 32.48

Q: O'Brien Inc. has the following data: rRf= 5.00% rPM = 6.00% b = 1.10 What is the firm's cost of…

A: In the given que we require to calculate Cost of equity from retained earnings from following…

Q: The following financial information is available on Rawls Manufacturing Company: Current per share…

A: The Dividend capitalization model refers to the model which measures the cost of equity of the…

Q: Blask Technology has the following capital structure: Debt:…

A: Capital Weight After tax cost Debt 35% 6.5% Preferred stock 15% 10.0% Common equity 50% 13.5%

Q: Based on the following information, calculate the return on stockholders' equity, and return on…

A: SOLUTION- FORMULA- 1-RETURN ON STOCKHOLDERS EQUITY=NET INCOME / AVERAGE STOCKHOLDERS EQUITY…

Q: O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.40. What is the…

A: Given the following information: Risk free rate: 5% Risk premium: 6% Beta: 1.4

Q: Calculate the missing information for the following stock. Show your work.

A: Information Provided: Annual dividend = $0.39 Current price per share = $26.50 Price-Earnings ratio…

Q: You are given the following information: Book value of stockholders' equity = $5 million;…

A: Given information : The market price of the company stock refers to the value at which a rational…

Q: SECOND BANK PROVIDES THE FOLLOWING EQUITY DATA: REGULATORY EQUITY RELATED ACCOUNTS PREFERRED STOCKS…

A: The term tier 2 capital refers to one of the components that a bank must maintain as a required…

Q: 1. The RYX financial institution declared a dividend of 59 per share for its common stock. The…

A: Formula: Stock Yield ratio = Dividend per share / Market value of the stock

Q: You are given the following information: Sales : OMR 100,000 Gross profit ratio : 15% Average stock…

A: Stock turnover ratio: Stock turnover is a ratio that measures the quantity of times inventory is…

Q: O'Brien Inc. has the following data: r RF=5.00%; RP M=6.00%; and b=1.10. What is the firm's cost of…

A: The below expression can be used to calculate the cost of equity:

Q: Corporation X, with a current market value of 62, gave a dividend of 9 per share for its common…

A: Stock dividend or Dividend yield ratio tells what percentage of market price of share is given to…

Q: What is the debt ratio for a firm with an equity multiplier of 3.5? ____ 44.09 percent ____ 58.51…

A: Debt ratio of a firm measures the weightage of debt in the total assets held by the firm.

Q: 9. Corporation Gen. Math, with a current market value of P 95.00, give a dividend of P 15.00 per…

A: Current market value of share = P 95 Annual dividend amount = P 15

Q: Pfizer, Inc. (PFE) has earnings per share of $2.09 and a P/E ratio of 11.02. What is the stock…

A: In this question we need to compute the price of stock using PE multiple approach.

Q: If a company issues common stock and coupon bonds and the debt-to-equity ratio are 0.85, the cost of…

A: Given information Debt Equity ratio = 0.85 Cost of equity = 12% Pretax cost of debt = 7% Tax rate =…

Q: 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place,…

A: 1. Return on total assets = (Operating income/ Average total assets) x 100 2. Return on…

Q: A company has EPS of $2.40, a book value per share of $21.84, and market/book ratio of 2.7X. What…

A: The question is based on the concept of Price to earnings ratio for the stock.

Q: The price-earnings ratio of a stock is given by R(P,E)=P/E where P is the price of the stock and E…

A: A ratio that provides information regarding the share price of a company by relating it to the…

Q: For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average…

A: The ratio analysis is performed to analyze the different aspects of financial statements of the…

Q: ST-4 Sheth Corporation has a return on assets ratio of 6 percent. If the debt to total assets ratio…

A: Return on Assets Ratio = 6% Debt to Total Asset Ratio = 0.50 Required What is the firm's return on…

Q: O'Brien Inc. has the following data: rRf= 5.00% rPM = 6.00% b = 1.10 What is the firm's cost of…

A: In the Given problem we require to calculate the firm's cost of equity based on CAPM from the…

Q: The following information have been taken from the X Company Dividends paid on preferred stock…

A: Market Price per share = 30 Net Income before taxes = 150 Income tax = 30% Number of shares of…

Q: What is the total return of an equal-weighted index over the holding period given the following data…

A: Return refers to the additional earnings over the invested amount. Basically, it is a profit which…

Q: Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity…

A: The equity multiplier is an indicator of risk that computes the portion of total assets that is…

Q: What is the debt ratio for a firm with an equity multiplier of 3.5? Multiple Cholce 71.43 percent…

A: Equity multiplier = 3.5 Equity to capital = 1/Equity multiplier = 1/3.5…

Q: The current dividends paid on a common stock is $1/share. The return on common equity is 15%.…

A: a) Stock Price = Expected Dividend / (Return on equity - growth rate) Expected Dividend = Current…

Question

Dale Corporation has the following data:

Dale’s rate of return on common stockholders’ equity is

a. 24%

b. 50%

c. 12%

d. 36%

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company reports the following: Determine (a) the return on stockholders equity and (b) the return on common stockholders equity. Round percentages to one decimal place.
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the following data (in milllions) for a recent year: Compute the return on stockholders equity. Round to one decimal place.
Stockholder Profitability Ratios The following information pertains to Montague Corporation Required: Calculate the return on common equity and the earnings per share. (Note: Round answers to two decimal places.)
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 market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
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.)
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
Stockholder Payout Ratios The following information pertains to Milo Mindbender Corporation: Required: Calculate the dividend yield, dividend payout, and total payout. (Note: Round answers to two decimal places.)
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Compute the following profitability measures for Esplanade Enterprises for 20-2: (a) Profit margin ratio (b) Return on assets (ROA) (c) Return on common stockholders equity (ROE) (d) Earnings per share of common stock (EPS)