Which item is not a component of the ending retained earnings balance? Group of answer choices Dividends paid during the year Net income for the year Stock sold during the year Beginning retained earnings

a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24

A-2

Adjusting for Negative Equity Phillip Morris reported the following information in its 2018 Form 10-K. $ millions Stockholders' (Deficit) Equity Common stock, no par value (2,109,316,331 shares issued in 2018 and 2017) Additional paid-in capital Earnings reinvested in the business Accumulated other comprehensive losses Total stockholders' equity before treasury stock Less: cost of repurchased stock (554,736,610 and 556,098,569 shares in 2018 and 2017, respectively) Total PMI stockholders' deficit Noncontrolling interests Total stockholders' deficit Net earnings Net earnings attributable to noncontrolling interests Net earnings attributable to PMI $ Numerator $ Dec. 31, 2018 Dec. 31, 2017 $0 2,715 43,420 (14,155) 31,980 a. Compute ROE for 2018 using the equity numbers as reported. Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Denominator ROE ◆ 49,421 (17,441)…

What terminology best describes the EPS (earnings per share) formula below?  Net income available to common stockholders/ (number of shares outstanding+ potential shares from employee options and  convertible debt) A-diluted EPS B-Basic EPS  C- operating EPS D- adjusted EPS

When calculating the weighted average shares of common stock outstanding, how should companies adjust for stock dividends? O They should be weighted by the number of days outstanding. O They should be considered outstanding at the beginning of the year. O They should be weighted by the number of months outstanding. O They should be considered outstanding at the mid-point of the year.

The price-earnings ratio on common stock is calculated as a.market price per share of common stock, divided by earnings per share on common stock b.market price per share of common stock, divided by dividends per share of common stock c.earnings per share of common stock, divided by market price per share of common stock d.dividends per share of common stock, divided by earnings per share on common stock