Return on equity measures:
Question 2 options:
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Answer - Return on equity measures -
a)the rate of profit per dollar of shareholder investment
Return on equity gives shareholders an idea as to how the company in which they have invested is performing and managing the funds. Higher the Return on equity the better it is for the business and its stakeholders
Return on equity measures: Question 2 options: a) the rate of profit per dollar of shareholder...
Return on common equity measures profitability per dollar of investment for: a. short-term suppliers of funds b. all suppliers of funds c. common stockholders d. all stockholders e. long-term suppliers of funds
UNCLUT I LULL 12. Return on common equity 13. Gross profit margin Note: For ratios that call for using average balance sheet figures, compute the rates average balance sheet figures and year-end balance sheet figures. b. Briefly comment on profitability and trends indicated in profitability. Also commento difference in results between using the average balance sheet figures and year end figures P 8-13 Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a...
1. Which statement is incorrect? a. Dividend yield measures the rate of return on the market price of a share. b. The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders. c. Dividend per share is the ratio to use when comparing income from shares with income from alternative investments. d. Dividend yield is an important ratio for an investor who is acquiring shares mainly for income. 2. A profit ratio for a retailer...
Question 70 The __________________ measures the rate of income earned on the amount invested by stockholders. a. Earnings per Share on Common Stock b. Rate Earned on Total Assets c. Rate Earned on Stockholders Equity d. Rate of net Sales to Assets Question 86 Current Assets total $35,000 and Current Liabilities total $32,000. Of the Current Assets, Cash totals $13,000 and Accounts Receivable, $5,000. What is the Current Ratio? the Quick Ratio? a. Current Ratio=1.09 Quick Ratio=.56 b. Current Ratio=1.09...
*************Just choose the correct answer 5- COMMON-SIZE STATEMENTS Includes:(……………….). * A) Common-Size Balance Sheets. B) Common-Size Income Statements. C) Common-Size Statements of Cash Flows. D) All of the above. ___________ 6- COMMON-SIZE STATEMENTS IS (………………). * A) A standardized financial statement presenting all items in percentage terms. B) NOT A standardized financial statement presenting all items in percentage terms. C) A standardized financial statement presenting one items in percentage terms. D) All of the above. ______________ 7- Common–Base Year Statement...
Only Part C:. "before the incestment the return on owners equity was (blank) %? & did the renovation have a favorable effect on the profitibility of the firm? FIN-320-R2892 Principles of Finance 19EW2 Homework: 4-2 MyFinanceLab Assignment Score: 3.57 of 5 pts 11 of 12 (12 complete) P4-31 (similar to) (Financial statement analysis) The annual sales for Salco, Inc were $4.69 milion last year The firm's end-of-year balance sheet was as follows: Salco's income statement for th a. Calculate Salco's...
1. Return on Assets measures a firm's: a. profitable use of its assets b. use of financial leverage c. return on shareholders investment d. profitability of sales e. cost effectiveness of its operating activities 2. The Current ratio of a firm is 1.3, If the firm uses cash to pay short-term notes-payable, would the transaction increase or decrease the current ratio and Return on Asset ratio? 3. Which of the following could cause return on equity to increase, all...
Profitability ratios: l. Profit margin % m. Return on assets % n. Return on equity % SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 336,329 Cost of goods sold 231,000 Depreciation 21,600 Earnings before interest and taxes $ 83,729 Interest paid 14,400 Taxable income $ 69,329 Taxes (21%) 14,559 Net income $ 54,770 Dividends $ 21,000 Retained earnings 33,770 Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and...
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving and net foreign saving. b) Investment and net exports. c) Total domestic saving and investment. d) Only total domestic saving. Question 2 (1 point) Saved Assuming all else held constant, an increase in net exports will lead to Question 2 options: a) an increase in net foreign saving. b) a decrease in the source of funds. c) a decrease in the trade...
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