Which one of these is a measure of profitability based on the contributed/invested capital and ea...
Which one of these is a measure of profitability based on the contributed/invested capital and earnings retained by the company.
return on investment, return on assets, earnings per share, none of the above or return on equity?
Homework Answers
The Return on Investment = NET INCOME/ INVESTED CAPITAL ,
Net income if not paid as dividend is the earnings that is retained by the company. Invested capital ,is the amount of capital invested initially.
Return on assets = net income/ total assets
EPS = net income/ number of shares outstanding
Return on equity = net income/ equity.
So, the correct option is option 1.
Add Answer to:
Which one of these is a measure of profitability based on the contributed/invested capital and ea...
19 Peppermint, Inc. wants to measure the relationship between profitability and the investment made by shareholders....
19 Peppermint, Inc. wants to measure the relationship between profitability and the investment made by shareholders. Peppermint should use the a. return on stockholders equity b. earnings per share c. profit margin. d statement of retained earnings. 20. To determine the current market price of the stock one should review the a. balance sheet b income statement c statement of retained earnings d. None of the above 21. Which of the following considerations is most important for a stockholder when...
1. Computing ROE and ROA: Both ROA and ROE measure profitability. Which one is more useful for...
1. Computing ROE and ROA: Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why? 2. (Graded) Ratio Analysis: Consider the ratio EBITD/Assets. What does this ratio tell us? Why might it be more useful than ROA in comparing two companies? 3. Return on Investment: A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long-term liabilities plus equity. What do you think return on...
Stockholders' equity is usually divided into which two broad categories? contributed capital and appropriated capital appropriated...
Stockholders' equity is usually divided into which two broad categories? contributed capital and appropriated capital appropriated capital and retained earnings retained earnings and appropriated capital earned capital and contributed capital
Scoring: Your score will be based on the number of correct matches. There is no penalty...
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each ratio that follows to its use. Items may be used more than once. Clear All Quick ratio Indicate future earnings prospects. Dividends per share < Indicate the ability to pay current liabilities. Return on total assets Assess how effectively assets are used Asset turnover ratio Indicate instant debt-paying ability Retum on common stockholders' equity Indicate instant debt-paying...
The company's profitability on each dollar invested in assets is represented by which of the following...
The company's profitability on each dollar invested in assets is represented by which of the following ratios: Multiple Choice Profit margin Asset turnover. Return on assets Return on equity
Why would it be incorrect to define a profitability ratio as earnings divide invested cap (NI/IC)...
Why would it be incorrect to define a profitability ratio as earnings divide invested cap (NI/IC) A. Taxes would not be treated correctly B. Earnings should be measured on per-share basis C.there is a mismatch between capital D.earnings include return available
Profitability Analysis Albion Inc. provided the following information for its most recent year of operations. The...
Profitability Analysis Albion Inc. provided the following information for its most recent year of operations. The tax rate is 40%. Sales $100,000 Cost of goods sold 45,000 Net income 10,500 Interest expense 350 Assets—beginning balance 120,000 Assets—ending balance 126,000 Preferred dividends $300 Common dividends (paid December 31) $8,000 Common shares outstanding—January 1 30,000 shares Common shares outstanding—December 31 40,000 shares Average common stockholders' equity $55,000 Market price per common share $12 Required: Round all answers to two decimal places except...
Required Answer the following multiple-choice questions: a. Which of the following is not considered to be...
Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a nonrecurring item? P 8-13 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of change in accounting principle 4. Interest expense 5. None of the above. rm? b. Ideally,which of these ratios will indicate the highest return for an individual 1. Return on assets 2. Return on assets variation 3. Return on investments 4. Return on total equity S. Return on common equity...
Question 2. What is the total contributed capital related to ordinary shares? Question 3 and 4...
Question 2. What is the total contributed capital related to
ordinary shares?
Question 3 and 4
PART IV - Problem solving. Encircle your final answers. Write your solutions on the spaces provided. (10 points) For items 1 and 2 Presented below is information related to BM Corporation: Share Capital-Ordinary, Pl par P4,300,000 Share premium-Ordinary 550,000 Share Capital-Preference 8 1/2%, P50 par 2,000,000 Share premium-Preference 400,000 Retained Earnings 1,500,000 Treasury Shares-Ordinary cat cost) 150,000 The total equity of BM Corporation is...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity and profitability OC. liquidity and solvency OD. consistency and solvency QUESTION 24 The debt to assets ratio is a O A. liquidity ratio O B. profitability ratio OC. solvency ratio D. None of the answer choices is correct A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
19 Peppermint, Inc. wants to measure the relationship between profitability and the investment made by shareholders. Peppermint should use the a. return on stockholders equity b. earnings per share c. profit margin. d statement of retained earnings. 20. To determine the current market price of the stock one should review the a. balance sheet b income statement c statement of retained earnings d. None of the above 21. Which of the following considerations is most important for a stockholder when...
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each ratio that follows to its use. Items may be used more than once. Clear All Quick ratio Indicate future earnings prospects. Dividends per share < Indicate the ability to pay current liabilities. Return on total assets Assess how effectively assets are used Asset turnover ratio Indicate instant debt-paying ability Retum on common stockholders' equity Indicate instant debt-paying...
The company's profitability on each dollar invested in assets is represented by which of the following ratios: Multiple Choice Profit margin Asset turnover. Return on assets Return on equity
Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a nonrecurring item? P 8-13 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of change in accounting principle 4. Interest expense 5. None of the above. rm? b. Ideally,which of these ratios will indicate the highest return for an individual 1. Return on assets 2. Return on assets variation 3. Return on investments 4. Return on total equity S. Return on common equity...
Question 2. What is the total contributed capital related to
ordinary shares?
Question 3 and 4
PART IV - Problem solving. Encircle your final answers. Write your solutions on the spaces provided. (10 points) For items 1 and 2 Presented below is information related to BM Corporation: Share Capital-Ordinary, Pl par P4,300,000 Share premium-Ordinary 550,000 Share Capital-Preference 8 1/2%, P50 par 2,000,000 Share premium-Preference 400,000 Retained Earnings 1,500,000 Treasury Shares-Ordinary cat cost) 150,000 The total equity of BM Corporation is...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity and profitability OC. liquidity and solvency OD. consistency and solvency QUESTION 24 The debt to assets ratio is a O A. liquidity ratio O B. profitability ratio OC. solvency ratio D. None of the answer choices is correct A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 8 minutes ago -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 12 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 27 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 22 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 35 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 43 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 43 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 45 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 46 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 50 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 1 hour ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 1 hour ago