The following information is available for Kingbird Corporation.Average common stockholders' equityAverage total stockholders' equityCommon dividends declared and paidPreferred dividends declared and paidNet incomePayout ratio2025Return on common stockholders' equity$1,300,0001,600,00046,50040,000150,0002024$800,0001,300,000202528,800Compute the payout ratio and return on common stockholders' equity for each year. (Round answers to 0 decimal places15%.)40,000120,0005.7%do%20245.7%%

The ratio analysis helps to analyze the financial statements on the basis of various elements of the…

The following information is available for Kingbird Corporation. Average common stockholders' equity Average total stockholders' equity Common dividends declared and paid Preferred dividends declared and paid Net income 2025 $1,300,000 1,600,000 46,500 40,000 150,000 2024 $800,000 1,300,000 28,800 40,000 120,000 Compute the payout ratio and return on common stockholders' equity for each year. (Round answers to O

The following information is available for Kingbird Corporation. Average common stockholders' equity Average total stockholders' equity Common dividends declared and paid Preferred dividends declared and paid Net income 2025 $1,300,000 1,600,000 46,500 40,000 150,000 2024 $800,000 1,300,000 28,800 40,000 120,000 Compute the payout ratio and return on common stockholders' equity for each year. (Round answers to O

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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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.)
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?
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.)
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and the Return on Stockholders Equity Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to four decimal places. 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.)
Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
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