For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B?

For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

See similar textbooks

Related questions

Q: COVID's apparel has total assets of P800,000, current liabilities of P150,000, and long-term…

A: There are two types of stock which are issued by a firm. One is the preference stock and other is…

Q: Bedard Corporation reported net income of $300,000 in 2020 and had 200,000 shares of common stock…

A: Formula to calculate diluted earnings per share (DEPS): DEPS = Net income attributable to common…

Q: The table below shows the market performance for a share of common stock in a multi-national…

A: Total dividend received in four year holding period = Dividends for (January 24, 2006+ January 24,…

Q: The balance sheet for Larry underwood motors shows a book value of stockholder’s equity ( book value…

A: Outstanding stock refers to a corporation's shares that are currently owned by investors and…

Q: A company has recently declared a dividend of 12p per share. The share price is £3.72 cum div and…

A: Price Earnings Ratio - Price earning Ratio shows the company's financial health of the company. This…

Q: Flava Corporation reported a net income of $300,000 in 2020 and had 200,000 shares of common stock…

A: Diluted earnings per share: It can be defined as the company’s earnings per share, assuming all the…

Q: A firm has $5,760,000 in its common stock account and $57,600,000 in its paid in capital account.…

A: Common stock consist of the par value of the share and paid-in capital is the excess amount on par…

Q: Oriole Company had net income for 2021 of $603000. The average number of shares outstanding for the…

A: The corporation used to identify diluted EPS for evaluating the per share earnings if the…

Q: What is the book value per share? If the stock currently sells for $63 per share, what is the…

A: Given the following information: Additions to retained earnings: $213,000 Dividends paid: $183,000…

Q: Coronado Corporation had net income of $2060000 and paid dividends to common stockholders of $296000…

Q: Suppose Wacken, Limited, just issued a dividend of $1.52 per share on its common stock. The company…

A: Let D(-4) = Dividend 4 years ago = $1.2 D(-3) = $1.26 D(-2) = $1.33 D(-1) = $1.44 D0 = $1.52 Let g =…

Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…

A: Common stock dividend yield = Dividend per common stock / Markrt price per common share

Q: Davidsons has a market value of $10.6 per share. The balance sheet shows $4,250,000 in the common…

A: The amount of dividend paid = Par value of stock * Dividend rate

Q: The company with the common equity accounts shown here has declared a 15 percent stock dividend when…

A: First, we need to calculate the new number of shares outstanding by multiplying the current shares…

Q: The average stockholder's equity for horn co. last year was P3,000,000. Included in this figure was…

A: The net income earned during the year will be aggregate of Earnings available for common Stock…

Q: The following are forecasts for the Can Corn Corporation for the upcoming year: Earnings before…

A: Particulars Amount (in millions) Earnings before interest and taxes P55 Less: Interest 15…

Q: National Company's net income last year was P75,000. The company paid preferred dividends of P12,000…

A: Return on common stockholders equity means net earnings earned on the investment made by common…

Q: Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000…

A: Price-earnings ratio = Market price per share / Earnings per share where, Earnings per share = Net…

Q: On June 30, Setzer Corporation had a market price of $46 per share of common stock. For the previous…

A: Dividend yield = Annual dividend/Market price

Q: At the end of the accounting period, Houston Company had $6,600 of common stock, paid-in capital in…

A: Stockholders Equity can be calculated by subtracting the total liabilities of a business from total…

Q: For its fiscal year- end, Calvan Water Corporation (CWC) reported net income of $12 million and a…

A: Before calculating diluted EPS, you need to calculate number of common stock increse due to…

Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…

A: Dividend is the return or profit for the common stockholders. It is the cost for the firm. Stock…

Q: At the beginning of last year, the stock price for ABC Company was $20 per share. ABC Company paid a…

A: Annual return = ( Market price + Dividend - initieal price ) / Initial price

Q: The original price of a stock is Php 32.75 and its current price is 39.75. For the past year, the…

A: Lets understand the basics. Return on investment is a income earned and gain made on the investment.…

Q: Selected information for Brain Corporation is as follows:…

A: The rate of return is calculated as net income for the year divided by average stockholder equity

Q: The balance sheet for Larry underwood Motors shows a book value of stockholders’ equity (book value…

A: PE Ratio = Market Value per shareEarnings per share Book Value per share = Total Shareholder's…

Q: If the stock currently sells for $77 per share, what is the market-to-book ratio? Makers Corp. had…

A: Market to book ratio = Market price / Book value per share

Q: Suppose Stark Ltd. just issued a dividend of $2.08 per share on its common stock. The company paid…

A: Workings: Formula: Growth rate = ( Current year dividend - previous year dividend ) / previous year…

Q: TNT Corporation's stock is currently selling at $36 per share. TNT reported total revenues of $5.26…

A: Price to Sales Ratio The price to sales ratio is a ratio that shows the relationship between the…

Q: The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20…

A: Ordinary shares- Ordinary shares, also known as common shares, are stocks sold on community barter.…

Q: On June 30th, Ray Corporation had a market price of $100 per share of common stock. For the previous…

A: Market price = 100 per share Previous year annual dividend = $8.00 per share Calculation of…

Q: Gordon Corporation reported the following equity section on its current balance sheet. The common…

A: A Stock Dividend is the payment of dividends in the forms of shares of the company. There are 2…

Q: National Company has 100,000 shares of P10 par value common stock issued and outstanding. Total…

A: Earning Per Share = Net incomeNumber of shares outstanding =…

Q: Kawther Inc. has net income of $200,000, average equity/ordinary shares outstanding of 40,000, and…

A: Earnings per share = (Net Income - preferred dividend) /ordinary shares outstanding

Q: Pina Colada Corp. had net income of $1612000 and paid dividends to common stockholders of $403000 in…

A: The question is based on the concept of Payout ratio

Q: Davidson Company has 10,000,000 common shares issued and 500,000 shares of treasury stock. The…

A: No. of common shares issued and outstanding = No. of common shares issued - shares of treasury…

Q: After a 5-for-l stock split, Tyler Company paid a dividend of $1.15 per newshare, which represents a…

A: Dividend per share is the income of the investors who have purchased equity shares of an entity.…

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: price would you expect U

A: Shareholder's equity shows the amount which is owner invested in the business. It can be done either…

Q: A company has a reported net income of RM12 million and 60 million shares outstanding. a) Estimate…

A: Net income = RM 12,000,000 Number of shares = RM 60,000,000 P/E Ratio = 14.0

Q: Kliza Company's net income last year was P130,000. The company paid preferred dividends of P42,000…

A: Return on equity (ROE) refers to the evaluation of the profitability of a company through the…

Q: Story Corporation had net income of $300,000 in 2018. The weighted average number of shares…

A: The answer is as fallows

Q: For the year, Peter Petroleum earned $2.1 million in net income. During the year, there were 1.05…

A: A stock is a type of instrument that denotes the holder's ownership stake in the listed firm and is…

Q: The market capitalization of Morning Rose Corp. is $5,580,000 at the company's most recent trade of…

A: Market Capitalization refers to value for which a corporation can be completely purchased by any…

Q: What was its P/E ratio?

A: The price-to-earnings ratio (P/E ratio) is the ratio for measuring the relationship between the…

Q: The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book…

A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…

Question

0.OKB/s 1ll
4G+
2:41 PM ě
80
00:50:13 Remaining
Multiple Choice
For the year 201B, ABC Company's
return on common stockholders'
equity was 12.5%. Its average
stockholders' equity for the same
period was P500,000, inclusive of
P50,000 par value of preferred stock
with a dividend rate of 8%.
How much was the company's net
income for 201B?
O P60,250
P56,250
O P58,500
P62,500
4 of 20

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

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?
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.
If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share? a. $7.00 b. $2.27 c. $3.08 d. $1.12
What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book value of equity of P3,000,000, and a market/book ratio of 1.0? a. P8.57 b. P30.00 c. P85.70 d. P105.00
Use the given stock table to find the dividend for ABC Technologies (ABC). 52-Week Yld Vol Net High Low Stock SYM Div PE 100s Close Chg 69.25 47.80 АВСТch ABC 1.76 1.5 17 5915 58.71 1.97 The dividend is $ per share. es
If C CORP. had 3,198,000 shares of common stock outstanding when it paid dividends last year, how much did it pay in dividends? Portion of Stock Exchange Listing Name Symbol Open High Low Close Net Chg %Chg Volume 52 Wk High 52 Wk Low Div Yield P/E Ytd % Chg A CORP. A 30.6 31.24 30.5 31.12 0.58 1.9 994,770 32.9 19.4 ... ... 24 6.6 B LTD. B 28.14 28.57 27.67 28.42 0.28 1 270,400 28.87 16.11 0.48 1.7 14 25.1 C CORP. C 48.6 49.07 48.52 28.42 0.29 0.6 1,598,100 50.33 25.43 1.48 3 ... 52.1 D LTD. D 14.35 14.58 13.92 14.51 0.16 1.11 54,900 16.55 12.6 ... ... ... −6.1 E CORP. E 23.76 24.3 23.62 24.03 0.23 0.97 570,711 27.45 17.95 ... ... 172 −9.2
You are given the following information: Book value of stockholders' equity = $5 million; price/earnings ratio = 10; shares outstanding = 100,000; and the market/book ratio = .5. Calculate the market price of %3D a share of the company's stock. O $37.50 O $25.00 O $50.00 O $75.00 O $16.67
The preferred stock of Axim Corp. is currently selling at $51.07. If the required rate of return is 11.7 percent, what is the dividend paid by this stock? (Round answer to 2 decimal places, e.g. 15.25.) Dividend paid $ ________
3. A property holdings declared a dividend of P9 per share for the common stock. If the common stock closes at P76, how large is the stock yield ratio on this investment? a. 27. 17% c. 11.04% b. 27. 07% d. 11.84%
H5. A stock has had the following year-end prices and dividends: Year Price Dividend 1 $40 — 2 $55 $1.10 3 $60 $1.20 4 $70 $1.30 The geometric average return for the stock is ______%. Group of answer choices 23. 45 20 28. 35 22. 86 33 .41 Show proper step by step calculation and explain with details
Consider the following stock price and shares outstanding information. % % % DECEMBER 31, Year 1 Shares Outstanding 101,000,000 $33 2,200,000 40 25,000,000 38 DECEMBER 31, Year 2 Shares Price Outstanding Price $19 74 36 a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places. PWIYear 1: PWIYear 2: VWIyear 1: VWIyear 2: b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places. Stock K Stock M Stock R aStock split two-for-one during the year. 101,000,000 4,400,000a 25,000,000
7:03 < 1/439 The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company US Bank PepsiCo 3DS Uniphase Duke Energy Shares 200 100 300 100 Portfolio Return Dollar return Percentage return Share Beginning or Price < 60.88 19.88 27.95 What is your portfolio dollar return and percentage return? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. 1% Year Dividend Per Share $ 2.16 1.36 1.36 Edit 11 End of Year Price Price $ 44.43 63.55 17.66 33.71 O Docum.... Ⓡ Delete 50 l ||| : More