OearchWhich of the following statements is true?1. The formula for the return on equity is: Return on equity = Net Income + Average total stockholders' equity.1. When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.Multiple ChoiceBoth statements are true.OOnly statement II is true.ОNeither statement is true.ОOnly statement I is true.< Prev20 of 20Next >200m70P

The true statement among the options is:I. The formula for the return on equity is: Return on equity…

Answered: O earch Which of the following…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 12CDQ

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Which of the following statements is true? I. The formula for the return on equity is: Return on equity = Net income ÷ Average total stockholders' equity. II. When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.
I cant with this: f. Return on common stockholders’ equity Heeeelllppppp
a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio is normally higher? Why?
Hi. I want to ask. If we want to find ROE (Return on Equity), we must know its net income and total common equity. May I know, total common equity is equal to 'total liabilities' right? Is it the same thing? Total common equity= Total liabilities Thank you in advance for answering.
Q . Which of the following statements is not true?a) The return on shareholders’ funds can be calculated as profit after tax /total equity x 100b) The dividend cover ratio can be calculated from the Income statement andthe statement of cash flows and the answer will be the samec) The interest cover ratio can be calculated from the income statement andthe statement of cash flows and the answer will be differentd) The operating profit margin is also called the net profit margin
The expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capital
There is a -impact of earnings on stock prices O a. Deductive O b. Positive O c. Normative O d. Negative
q1- Which of the following item is not used in equity-based valuation models? Select one: a. Working capital b. Dividends c. Earnings d. Cash flows
n the formula ke >= (D1/P0) + g, what does (D1/P0) represent? Select one: a. The expected capital gains yield from a common stock b. The interest payment from a bond c. The expected dividend yield from a common stock d. The dividend yield from a preferred stock
Which of the following formulas is INCORRECT? O A. Div = EPS, X Dividend Payout Rate OB. TE= (Div/P)+g OC. PN(Eg) × Div N+1 O D. earnings growth rate= retention rate x return on new investment
NPAT Less prefernce dividend is used in O a. Return on Equity O b. Return on Equity share capital О с. Return on Capital Employed O d. Debt service ratio
Assuming net income and shareholders equity are positive, and at least $1 in liabilities, the Return on Investment is: Always higher than the Return on Equity. Always equal to the Return on Equity. Sometimes equal to the Return on Equity. Always lower than the Return on Equity.

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