Why would a company’s return on total assets be different from its return on common stockholders’ equity?

Q: how do I analyze changes in a company's equity

A: This shows the capital of the company.

Q: how does earnings extremely important to a publicly traded company?

A: Publicly Traded Company Corporations that have sold their shares on a public stock exchange through…

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: A change in statement of changes in equity in a company may result to what

A: Answer: Statement of changes in equity in a company is the summary statement to represent the…

Q: How can processes, policies and controls related to a company’s finance and investment cycle affect…

A: An internal control are those rules, policies, control and procedure that is implemented by the…

Q: what determines the market value of a company are not profits, per se, but rather, cash flows?

A: Market value of a company : In simple words, the market value of a company refers to the value of a…

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: Are assets: (a) always lower than liabilities or (b) financed by the stockholders' equity?

A: Assets are the property of the business which can be converted into money and which gives benefit to…

Q: Why does a Chief Financial Officer need to know their company's cost of equity?

A: A chief financial officer is one of the  top-level executive. The CFO is a financial controller who…

Q: What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for…

A: Solution:- Given, Common stock from 1,00,000 shares authorized 40,000 shares issued on Stockholder's…

Q: What are if any the differences between Stockholder's Equity, Retained Earnings, Common Stock,…

A: Owner’s equity is the difference between total assets and total liabilities. Owner’s equity is…

Q: Which does not affect total shareholders’ equity? a. Stock dividend b. Scrip dividend c. Cash…

A: The dividend is paid to the shareholders from the retained earnings of the business.

Q: Which does not affect total stockholders' equity? Property dividend Cash dividend…

A:

Q: How would you relate information asymmetry to firm’s dividend policy?

A: Information asymmetry refers to when one party has extensive knowledge about a particular subject…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition:   Equity method: Equity method is the method used for accounting equity investments…

Q: what is the price of company stock? iS IT WORTH TO INVEST IN? EXPLAIN

A: We are given some financial ratios  for 3 consecutive years for a company based on which we need to…

Q: A business can be valued by capitalizing its earnings stream. Does one measure make more sense than…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: What amount of total assets have been financed by the creditors and by the stockholders?

A: Total Liabilities= Current Liabilities + Non current liabilities Stockholders equity= Common stock+…

Q: in how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down…

A: Du Pont system is very important concept in calculation the return on equity and it is very…

Q: id-in-capital and retained earnings: Similar? Different? What are the main categories of paid-in…

A: It is usually split into two different line items: common stock (par value) and additional paid-in…

Q: o what extent is the auditors' opinion an indicator of a company's future financial success and…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: According to the bird-in-the-hand-theory, how do high dividends impact company value and why?

A: The dividend is the amount that is paid to the shareholders as the return on the shares after paying…

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: What is the main problem in using a balance sheet to provide anaccurate assessment of the value of a…

A: It is difficult to determine the value of a company's equity using a balance sheet because of the…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: )How would you relate information asymmetry to firm's dividend policy?

A: Information asymmetry means when one party has more information than other party. For example, in a…

Q: What is the purpose of making a Statement of Changes in Equity in a Company?

A: Statement of changes in equity is the reconciliation of beginning and ending balances of…

Q: What are the cash flow effects when a company uses the equity method to record its proportionate…

A: The equity method of financing is the method through which a corporation records and reports its…

Q: What is the purpose of Statement of Changes in Equity in a Company

A: The financial statements of the business includes the income statement, cash flow statement,…

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: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: When would a company be able to declare a cash dividend?

A: Dividend means the amount given to shareholder of the company as profit distribution by company.

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: objective of financial manager is to maximise shareholders value.

Q: Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks…

A: A stakeholder is defined as a "person or group that has an interest in any decision or action of an…

Q: What is the effect on the accounting equation when a stock dividend is declared? What is the effect…

A: Stock Dividends:  It refers to the payment of the dividend to its shareholders by the corporation in…

Q: oes cost

A: Cost of capital : The required return on capital, especially as the expense of developing a new…

Q: How do a company’s investment opportunities, capital structure,and working capital policies affect…

A: Shareholders are the subscribers of the firm’s capital. They are the owners of the company. A…

Q: what are the similarities between paid-in-capital and retained earnings

A: The answer is as fallows

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

Q: When do dividends become legal debt of the company?

A: Once the dividend is declared by the company, it has to pay dividend in certain deadlines. It…

Q: How do we use debt to equity ratio to evaluate business performance?

A: debt to equity ratio is a ratio used to measure the solvency of a business . Debt to equity ratio is…

Q: Is a company's dividend policy important?

A: Dividend policy is about the dividend that has to be paid by the company. It is about how much…

Q: The balance in retained earnings is not affected by Choose net income. aluation of a company's…

A: Retained earnings is an accumulation of net income or loss over a period of time and it is…

Q: Is a company's dividend policy important? Please explain why or why not

A: Dividend policy is concerned with financial policies that involve paying a cash payout now or paying…