What is net worth or shareholders’ net worth?

Q: What is the dividend payout ratio and the dividend yield ratio?

A: Dividend payout ratio is the ratio between total dividends and the net income of a company. It helps…

Q: Define shareholders wealth. Explain how it is measured.

A: Shareholder valuation is assigned to a company's investors depending on the company's ability to…

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders…

Q: What are the different types of dividends, and how is a dividend paid?

A: A portion of profits payable to the shareholders by the company on a regular period is termed as…

Q: What is earnings management?

A: Earnings refer to the amount earned by the business during the financial year. It may vary from year…

Q: Which are more critical to the dividend decision, earnings or cash flow? Explain.

A: The dividend is the amount paid to the equity shareholders in return to the amount of investment in…

Q: In Wealth Maximization, the term "Wealth" means: a. Management's Wealth b. Employee's Wealth С.…

A: Wealth maximization is considered the main objective of financial management

Q: Explain the difference between profit maximisation and shareholder wealth maximisation

A: An organisation goal is a predetermined target that a company or individual intends to meet during a…

Q: Are debtors calculated at selling price or finished goods price for net working capital? and why?

A: Net working capital means the difference between the current assets and current liabilities. Current…

Q: Is Share Dividends qualify as Revenue?

A: If the entity is in the business of buying and selling shares and securities then share dividends…

Q: What amount should be reported as total shareholders' equity ad?

A: Total Shareholder's equity refers to the net worth of the company.Which is the amount that would be…

Q: What are the other names of shareholders equity?

A:

Q: What is the related standard for Shareholders Equity?

A: The philippine financial reporting standards: These are the accounting standards and practices used…

Q: What is the non-controlling interest in net income?

A: The net income of the subsidiary on multiplying with the percentage of Non-controlling interest(NCI)…

Q: What is shareholders equity

A: Share holders are the real owners of the company. Formula: Share holders equity = Total Assets -…

Q: What is a company's capital structure and why is it important?

A: Answer: Company consists of assets, liabilities and equity in the financials.  Company capital…

Q: How do the availability and cost of outside capital affect dividendpolicy?

A: Dividends are the profits that are paid to the stockholders. The company always tries to achieve a…

Q: How do investment opportunities affect dividend policy?

A: The question is based on the concept of investment policy and its impact on dividend policy of a…

Q: What is the net income for this firm?

A: Net Income is revenue excluding all expenses of the firm

Q: financial gain

A: ANSWER- ECONOMIST  The Economist online offers authoritative insight and opinion on international…

Q: what is eturn on common shareholders' equity role in analysis?

A: Return on common shareholders’ equity: It refers to the return that company investors of common…

Q: D. What is the total investment by shareholders? E. How much do customers owe the company?

A:

Q: Which one of the following is an internal characteristic that can affect the value of an investmen…

A: Internal Characteristics mean factors within the organization. It excludes political events,…

Q: Which of the following forms part of shareholders' equity?

A: Shareholders Equity is also called as net worth which shows how much capital the company has…

Q: What does capital structure of a company means?

A: Capital structure of a company is the proportion of various long term sources of finance used to…

Q: compute for the Equity Shareholder's Net Income

A:

Q: how is financial decisions helps create value for the firm's shareholder?

A: Solution- Impotance of Financial Decisions to create value for firm's shareholders-       A good…

Q: What is meant by capital structure and how is it different from financial structure?

A: Capital structure of the company can be defined as the combination of various sources such as debt,…

Q: In regard to dividends and earnings, when and how should you and other owners be rewarded?

A: Dividend is a periodic return paid by the company to the shareholders out of the current profits.…

Q: What are dividend reinvestment plans?

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: What does investing activities includes?

A: Definition: Statement of cash flows: The statement of cash flow is a financial statement that shows…

Q: What is the difference between the two basic sources of shareholders’ equity?

A: Shareholder's equity is the capital contributed by shareholders in the company and accumulated…

Q: What is Weighted Average Cost of Capital or WACC? How can current economic and political…

A: Weighted average cost of capital is the cost of capital to the firm inclusive of the cost of capital…

Q: what is return on common shareholders' equity?

A: There are various ratios which measure the profitability of a firm like return on equity, return on…

Q: what is the shareholder value in M&A

A: The value delivered to a corporation's equity owners as a result of management's ability to increase…

Q: What is the relationship between the concepts of net present value and shareholder wealth…

A: Net persent value(NPV): NPV is the difference between persent value of all future cash inflows and…

Q: discuss financial theories surrounding the shareholder wealth maximization paradigm (e.g. agency…

A: The theory of the agency is a principle used in the relationship between company principals and…

Q: What is a dividend?

A: The dividend is a share of profits given by the company to its shareholders. The dividends can be…

Q: describe the components of shareholders’ equity

A: Shareholder's equity is calculated as the difference between the company's total assets and the…

Q: How does shareholder value relate to capital structure?

A: The combination of various types of external funds, known as capital, used to finance a corporation…

Q: What goals can be pursued other than maximizing shareholders wealth

A: Company has a goal of increasing the shareholders' value with the increase in stock price. The price…

Q: What are the impotance of Earning per Share and Diluted Earnings per Share in making economic…

A: Diluted EPS= Net Income−Preferred DividendsWASO+CDS​ where: EPS=Earnings per share WASO=Weighted…

Q: WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?

A: Owner equity means the amount that belong to the owner of the business.  Any profit will increase…

Q: You maximize shareholder's wealth by seeking to maximized Earnings Per Share which is based on…

A: Shares holders are TRUE owners of company and maximization of wealth of shareholders is objectives…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.