Return on equitya. is a measure of the ratio of net income to dividends declared.b. is calculated for preferred stock only.c. is calculated by dividing net income plus preferred dividends by average common stockholders’ equity.d. is a measure used to compare companies of different sizes.

Q: Which of the following is ratios represents dividends per common share in relation to market price…

A: The ratio represents dividend per common share in relation to Market price per common share is as…

Q: Which of the following describes the information reported in the statement of stockholders’ equity?…

A: Financial statement   A formal record for the financial activities and the position of an…

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: 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: When a company issues a stock dividend, which of the following would be affected? Group of answer…

A: It is a dividend paid to shareholders in the form of stock rather than cash. Although it might…

Q: What is the difference between earnings per share (EPS), funds from operations (FFO), adjusted funds…

A: Answer: Earnings per share: Earnings per share means the net income received by each member of the…

Q: Dividends yield = .............................%   b. Return on equity =…

A: Dividend Yield = (Dividend Per Share/Current Market price ) * 100 Return on equity = (Net Income/…

Q: A stock dividend a. increases the debt to equity ratio of a firm. b. decreases future earnings per…

A: The correct answer is Option (b).

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: 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: How is EPS calculated?   a)  Operating profit divided by the average number of common stock shares…

A: Solution:- Earnings per share (EPS) means that how much amount of profit the company has earned for…

Q: Book value per share is computed by dividing the net assets to the total number of shares…

A: Book value per share: It is the financial ratio that represents the minimum value of a company's…

Q: To find out the total amount of dividends distributed by the company, one should refer to   Choices;…

A: Introduction:- The following are main financial statements of company as follows under:- Income…

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: It is calculated, taking into account the outstanding equity shares of the company A. Conversion…

A: Issue of shares is an important source of finance for the business. Several type of shares can be…

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

A: EPS = earnings per share .

Q: TRUE OR FALSE? In computing earnings per share, we must interpret this in terms of the number of…

A: EPS or Earnings-per-Share refers to portion of net profit that belongs to each single unit of common…

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: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

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 should a "gain" from the sale of treasury stock be reflected when using the cost method of…

A: ANSWER   It will be recorded as a paid-in capital from treasury stock. Although the company made a…

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: in your own words 100 words Explain how return on equity (ROE), return on assets (ROA), and price…

A: Return on Equity: When you divide your net income by your shareholders' equity, you get a measure of…

Q: The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of…

A: The accounting  equation is Total assets = Total shareholders  equity  + Total liabilities

Q: Basic earnings per share is computed as net income minus preferred dividends, divided by…

A: Earnings per share (EPS) is the ratio that describes how much profit is earned by the company for…

Q: Which of the following statements is not true? a) The return on shareholders’ funds can be…

A:

Q: A. Calculate the dividends paid to the preferred stockholders. B. Calculate the dividends paid to…

A: A. $120,000 B. $30,000

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: outstanding

A: Outstanding shares of a company refer to the company's stock which is held by its shareholders…

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

A: Solution The journal entry for issuance of stock dividend is Retained earnings debit Common stock…

Q: True

A: Common stock refers to the shares in a company that is owned by the general public and has several…

Q: Stockholders' equity

A: We know that shareholders' equity is the money that is invested by owners into business. It is…

Q: Treasury shares are most often reported as: A) A reduction of total shareholders' equity. B) A…

A: Treasury stock are the stocks which are bought back by the company , thus this reacquired stocks…

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: TRUE OR FALSE Price earnings ratio refers to the multiplier applied to earnings per share to…

A: Price earnings ratio is P/E ratio. It shows the relationship between price per share and earnings…

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.

Q: The gross increase in stockholder’s equity attributable to business activities are called: a)…

A: Stock holders equity = equity share capital + Reserves and surplus

Q: The price-earnings ratio on common stock is calculated as a.market price per share of common stock,…

A: Price-earnings ratio=Market price per share of common stockEarnings per share on common stock The…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.