a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio is normally higher? Why?

Q: Do the Market-value ratios relate a firm's stock price to its earnings and book value per share?…

A: The market value ratios are generally used to assess the current stock price of a public listed…

Q: According to financial bep, what is the position of bep, what will be the operation if there is only…

A: Financial break even point is a point where earnings before income tax is equal to financial cost of…

Q: Which of the following does NOT directly affect a company's cost of equity? Select one: a. Return…

A: The capital asset pricing model (CAPM) describes the relationship between the expected return and…

Q: How we prepare stockholders equity and find net income?

A: Stockholders' equity, also referred to as shareholders' equity, is the remaining amount of assets…

Q: Which of the following is an appropriate computation for return on investment? a. Sales…

A: Return on Investment (ROI) is the measure to assess the efficiency of the capital invested. It is…

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: 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: What is dividend payout ratio of AGA?

A: Dividend payout ratio is the percentage of dividend paid out of Net Income. It is computed as =…

Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…

A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…

Q: s it true of false that stock sold for amounts in excess of par value results in a gain reported on…

A: A company issues its common stock at par value or at an amount more than the par value. The amount…

Q: Does dividend policy affect on Debt to equity ratio? And what does the negative D/E ratio indicat

A: Debt equity ratio indicates the level of use of financial leverage in a company and the formula for…

Q: True or False Returns from the overall market can be thought of as a combination of three factors:…

A: The operating profit of a corporation is the entire earnings from its core business tasks for a…

Q: a) Where did the profit go? b) What do you mean by dividend? Explain c) How was it possible to…

A: Statement of cash flows:   It is one of the financial statement that shows the cash and cash…

Q: market capitalization is higher, lower, equal to total shareholders' equity

A: Market capitalization is computed by multiplying the current market price of the shares with the…

Q: there any relationship between the CFPS, EPS and DPS? Is there any correlation between dividends…

A: Explanation- A- DIVIDEND PER SHARE IS CONSTANT FOR ALL YEAR IRRESPECTIVE OF EPS AND CASHFLOW.…

Q: The cost of equity is easier to estimate than the cost of either debt or preferred stock.  True…

A: WACC- Weighted average cost of capital (WACC) is the rate that a company is expected to pay on…

Q: A measure of profitability analysis is a. times interest earned. b. cash flow per share.…

A: Evaluation of profitability: In general, financial ratios are used to evaluate capabilities,…

Q: How is the common stockholders' equity, or net worth, calculated?

A: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the stockholders on the…

Q: Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick…

A: The liquidity ratios helps to know about the capability of the business to pay off its liabilities…

Q: What’s is the Return on Average Equity?

A: The return on average equity (ROAE) is a financial metric that helps to evaluate the profitability…

Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…

Q: Which of the following is an idicator of financial risk ? a)     Net Sales / Total Assets b)…

A: The Financial ratio is mainly used by the investor for measuring the financial performance of the…

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: 1. Why is there a cost associated with retained earnings? 2. What is Coleman's estimated cost of…

A: Given: The firm tax rate is 25% The current price of coleman’s is 12% The current price of firm is…

Q: Explain how to calculate rate of return on common stockholder’s equity.

A:

Q: What does the Stockholders' equity indicate?

A: Stock holders equity is also called as Shareholders equity.

Q: Why is earnings per share called “the bottom line”? What is EBIT, or operatingincome?

A: Earnings per share is the company’s net revenue/income that can be distributed among its…

Q: Which of these are not the method of financial statement analysis Select one: O a. Trend Analysis b.…

A:

Q: What is the difference between book value per share of common stock and market value per share? Why…

A: Book Value per share: Book value per share can be calculated as follows: BVPS =   Total Equity −…

Q: is common stock decrease debit or credit?

A: Common Stock-  It refers to the shares which are issued by the organization within the general…

Q: What is the difference between common stock and retained earnings?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Which is not one of the three sources of return for an investor in a common stock? A-debt…

A: The capital structure of a firm consists of common stock, preferred stock and debt.

Q: Define the term Return on Common Equity? How does it measure profitability?

A:

Q: c. How much Resulting APIC is to be charged or debited for the stock issuance cost d. How much…

A: According to IFRS 3 Business Combination, the cost incurred for issuing stock shall not be treated…

Q: Cost of equity can be calculated using the SML approach or the dividend discount models. True or…

A: Cost of equity is the return that the company pays to its shareholders in exchange for providing the…

Q: Why would a company’s return on total assets be different from its return on common stockholders’…

A: Equity: Each company needs finance to run the business. Equity is one of the method through which…

Q: How to calculate selling price, markups, markdown, stockturn rate, and return on investment.

A: Financial Ratio: A financial ratio, or bookkeeping proportion, is the general size of two chosen…

Q: Ratios:  Which of the following ratios is not considered to be a test of profitability?   Long-Term…

A: Profitability ratios are a group of financial indicators that are used to evaluate a company's…

Q: What are the siginificance of financial ratios (i.e. current ratio; DSO; TATO; profit margin; ROA;…

A: Financial ratios are relationships obtained from the financial ratios of a company.There are several…

Q: Which of the following is NOT used by analysts to value stocks? * P/E Ratio O P/ Assets Ratio O…

A: RELATIVE VALUATION Relative valuation involves comparing ratio multiples of a company with other…

Q: What is a “dividend return” and a “capital gain,” and how do these terms enterthe arbitrage equation…

A: The Arbitrage pricing equation is  E(Ri) = E(Rf) +Beta * [E(I)-E(Rf)] E(Ri) is the return on the…

Q: How does preferred stock compare to long-term debt? In what respects is this comparable to equity?

A: The preferred stock and common stock are the financial instruments to raise money from the market.

Q: Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated…

A: a. Sinking fund is a long term asset and included in the company's Balance sheet as Non current…