Homework Answers
1. a. Earnings per share = (Net Income - Preferred dividends)/ Average Number of Shares Outstanding = ($1,240,000 - 8% of $5,000,000)/400,000 = 2.1
b. Price/Earnings Ratio = Market Price per share/Earnings per share = 26.25/2.1 = 12.5
c. Dividend Payout Ratio = Dividends paid/ Net Income - Preferred Dividends = (0.45 * 4 * 400,000)/($1,240,000 - $400,000) = $720,000/$840,000 = 85.71%
d. Dividend yield ratio = Dividend per share/Market Price per share = 1.8/26.25 = 6.86%
2. As a financial advisor, I need to check future earnings growth, risk of the stock and general economic trends and how they affect the company.
Answer is d. All of these.
Add Answer to:
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Kotsis...
Exercise 10-79 Ratio Analysis MJO Inc. has the following stockholders' equity section of the balance sheet:...
Exercise 10-79 Ratio Analysis MJO Inc. has the following stockholders' equity section of the balance sheet: MJO Inc. Balance Sheet (Partial) Stockholders’equity: Preferred stock, 100,000 shares authorized; 30,000 issued and outstanding $300,000 Common stock, 1,000,000 shares authorized; 600,000 issued; 550,000 outstanding 1,200,000 Additional paid-in capital: Preferred stock $90,000 Common stock 4,800,000 4,890,000 Total capital stock $6,390,000 Retained earnings 450,000 Accumulated other comprehensive income 22,000 Less: Treasury stock, at cost (800,000) Total stockholders’ equity $6,062,000 On the balance sheet date, MJO's...
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) $255,000 Common Stock ($3 stated value, 350,000 shares authorized) 875,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,750 Paid-in Capital in Excess of Stated Value—Common Stock 560,000 Retained Earnings 686,000 Treasury Stock (4,250 common shares) 34,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,440 shares...
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) $255,000 Common Stock ($3 stated value, 350,000 shares authorized) 875,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,750 Paid-in Capital in Excess of Stated Value—Common Stock 560,000 Retained Earnings 686,000 Treasury Stock (4,250 common shares) 34,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,440 shares...
Calculate the payout ratio, earnings per share, and return on common stockholders' equity. decimal place. 17.5%.)...
Calculate the payout ratio, earnings per share, and return on common stockholders' equity. decimal place. 17.5%.) Payout ratio 62.16 % Earnings per share 0.86 Return on common stockholders' equity 8.53 % The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 11,000 shares authorized) Common Stock ($4 stated value, 660,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings...
Calculate the payout ratio, earnings per share, and return on common stockholders’ equity. (Round earning per...
Calculate the payout ratio, earnings per share, and return on
common stockholders’ equity. (Round earning per share
to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal
place. 17.5%.)
The stockholders’ equity accounts of Monty Corp. on January 1,
2017, were as follows.
Preferred Stock (6%, $100 par noncumulative, 4,900 shares
authorized)
$294,000
Common Stock ($3 stated value, 335,000 shares authorized)
837,500
Paid-in Capital in Excess of Par Value—Preferred Stock
14,700
Paid-in Capital in Excess of Stated...
The stockholders’ equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock...
The stockholders’ equity accounts of Cyrus Corporation on
January 1, 2017, were as follows.
Preferred Stock (7%, $100 par noncumulative, 5,000 shares
authorized)
$300,000
Common Stock ($4 stated value, 300,000 shares authorized)
1,000,000
Paid-in Capital in Excess of Par Value—Preferred Stock
15,000
Paid-in Capital in Excess of Stated Value—Common Stock
480,000
Retained Earnings
688,000
Treasury Stock (5,000 common shares)
40,000
During 2017, the corporation had the following transactions and
events pertaining to its stockholders’ equity.
Feb.
1
Issued 5,000 shares...
Please help solve P 11-1A and P 11-8A Thanks Prepare dividend entries, prepare & stockholders' equity section. and caiculate ratios *P11-8A On January 1 2017. Tacoma Corporation had th...
Please help solve
P 11-1A
and P 11-8A
Thanks
Prepare dividend entries, prepare & stockholders' equity section. and caiculate ratios *P11-8A On January 1 2017. Tacoma Corporation had these stockholders' equity accounts. 700,000 500,000 620,000 Common Stock ($10 par value, 70,000 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earmings O 3.4,51, AP GLS During the year, the following transactions occurred. 581 Comprehensive Accounting Cycle Review Jan. 15 Declared a $0.50 cash dividend per share to...
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018,...
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows. Stockholders' Equity Paid-in capital Preferred stock,? par value, 5% cumulative, 230,000 shares authorized, 53,000 shares issued 636,000 and outstanding Common stock, $25 stated value, 280,000 shares authorized, 53,000?? shares issued and outstanding 1, 325,000 43,000 159,000 Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Common Total paid-in capital Retained earnings Treasury stock, 9,000 shares Total stockholders' equity...
Shown below is the stockholders' equity section of Tiny Tot's stockholders' equity section of the balance...
Shown below is the stockholders' equity section of Tiny Tot's stockholders' equity section of the balance sheet at December 31, 2020: Common stock, $1 par value, 5,000,000 shares authorized, 670,000 shares issued and outstanding Additional paid-in capital Retained earnings Total stockholders' equity $670,000 1,420,000 2,900,000 $ 4,990,000 During 2021, the following events occurred: Tiny Tot's was authorized to sell 100,000 shares of $100 par, 8% preferred stock Tiny Tot's sold 15,000 shares of the preferred stock at its par value...
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018....
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018. is as follows. $540,eee Stockholders' Equity Paid-in capital Preferred stock,? par value, 5% cumulative, 150,000 shares authorized, 45,000 shares issued and outstanding Common stock, $15 stated value, 280,000 shares authorized 45,eee?? shares issued and outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Connon Total paid-in capital Retained earnings Treasury stock, 4,000 shares Total stockholders' equity 675,000 35,000 225, eee...
Calculate the payout ratio, earnings per share, and return on common stockholders' equity. decimal place. 17.5%.) Payout ratio 62.16 % Earnings per share 0.86 Return on common stockholders' equity 8.53 % The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 11,000 shares authorized) Common Stock ($4 stated value, 660,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings...
Calculate the payout ratio, earnings per share, and return on
common stockholders’ equity. (Round earning per share
to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal
place. 17.5%.)
The stockholders’ equity accounts of Monty Corp. on January 1,
2017, were as follows.
Preferred Stock (6%, $100 par noncumulative, 4,900 shares
authorized)
$294,000
Common Stock ($3 stated value, 335,000 shares authorized)
837,500
Paid-in Capital in Excess of Par Value—Preferred Stock
14,700
Paid-in Capital in Excess of Stated...
The stockholders’ equity accounts of Cyrus Corporation on
January 1, 2017, were as follows.
Preferred Stock (7%, $100 par noncumulative, 5,000 shares
authorized)
$300,000
Common Stock ($4 stated value, 300,000 shares authorized)
1,000,000
Paid-in Capital in Excess of Par Value—Preferred Stock
15,000
Paid-in Capital in Excess of Stated Value—Common Stock
480,000
Retained Earnings
688,000
Treasury Stock (5,000 common shares)
40,000
During 2017, the corporation had the following transactions and
events pertaining to its stockholders’ equity.
Feb.
1
Issued 5,000 shares...
Please help solve
P 11-1A
and P 11-8A
Thanks
Prepare dividend entries, prepare & stockholders' equity section. and caiculate ratios *P11-8A On January 1 2017. Tacoma Corporation had these stockholders' equity accounts. 700,000 500,000 620,000 Common Stock ($10 par value, 70,000 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earmings O 3.4,51, AP GLS During the year, the following transactions occurred. 581 Comprehensive Accounting Cycle Review Jan. 15 Declared a $0.50 cash dividend per share to...
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows. Stockholders' Equity Paid-in capital Preferred stock,? par value, 5% cumulative, 230,000 shares authorized, 53,000 shares issued 636,000 and outstanding Common stock, $25 stated value, 280,000 shares authorized, 53,000?? shares issued and outstanding 1, 325,000 43,000 159,000 Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Common Total paid-in capital Retained earnings Treasury stock, 9,000 shares Total stockholders' equity...
Shown below is the stockholders' equity section of Tiny Tot's stockholders' equity section of the balance sheet at December 31, 2020: Common stock, $1 par value, 5,000,000 shares authorized, 670,000 shares issued and outstanding Additional paid-in capital Retained earnings Total stockholders' equity $670,000 1,420,000 2,900,000 $ 4,990,000 During 2021, the following events occurred: Tiny Tot's was authorized to sell 100,000 shares of $100 par, 8% preferred stock Tiny Tot's sold 15,000 shares of the preferred stock at its par value...
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2018. is as follows. $540,eee Stockholders' Equity Paid-in capital Preferred stock,? par value, 5% cumulative, 150,000 shares authorized, 45,000 shares issued and outstanding Common stock, $15 stated value, 280,000 shares authorized 45,eee?? shares issued and outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Connon Total paid-in capital Retained earnings Treasury stock, 4,000 shares Total stockholders' equity 675,000 35,000 225, eee...
Most questions answered within 3 hours.
-
Part 3: Arrows
Write a python program that prompts the user for a number of
columns,...
asked 2 minutes ago -
Need help answering these questions!!
1. What economic concept do you find most interesting in
Macroeconomics?...
asked 6 minutes ago -
1. Nimbus, Inc. produces and sells brooms. This table shows the
relationship between the number of...
asked 10 minutes ago -
A gas occupies 200. mL in a piston. If the pressure of the
piston were decreased...
asked 26 minutes ago -
A fossil is found to have a 14C level of 71.0% compared to
living organisms. How...
asked 30 minutes ago -
Many communist or socialist countries have a department that
addresses public health as well as the...
asked 32 minutes ago -
the following questions are either true or false answers
1. The Central Limit Theorem allows one...
asked 32 minutes ago -
The patient recovery time from a particular surgical procedure
is normally distributed with a mean of...
asked 38 minutes ago -
Human relations refer to the way a company arranges people,
jobs, and communications so that work...
asked 56 minutes ago -
Python Program: Design the logic for and implement a program
that merges the two files into...
asked 54 minutes ago -
The specific radiocarbon activity of a sample of wood is 6.25
gms dpm/gm of carbon. The...
asked 59 minutes ago -
An aqueous magnesium chloride solution is made by dissolving
6.96 moles of MgCl2 in sufficient water...
asked 1 hour ago