1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleksandr [31]
3 years ago
13

Katie Inc. reported net income of $171,000 for the current year and paid dividends of $26,000 on common stock. It also has 10,00

0 shares of 6%, $100 par value, noncumulative preferred stock outstanding. Common stockholders’ equity was $1,200,000 on January 1 and $1,600,000 on December 31. The company’s return on common stockholders’ equity for the current year is___________.
Business
1 answer:
yulyashka [42]3 years ago
3 0

Answer:

The company’s return on common stockholders’ equity for the present year is 7.9%

Explanation:

The return on common stockholders’ equity of the company for the present year is computed as:

= Net Income - (Shares x 6% x  Rate of shares)

where

Net Income is $171,000

Shares is 10,000

Rate is $100

Putting the values in the above:

=$171,000 - (10,000 x .06 x $100)

= $171,000 - $60,000

= $111,000

Return on common stockholders’ equity  = [ $111,000 / Common stockholders’ equity on January 1 + Common stockholders’ equity on December 31 / 2 )]

= ([$111,000($1,200,000+$1,600,000 /2 )]

= $111,000 / ($28,00,000 / 2)

= $111,000 / $14,00,000

= 0.079 or 7.9%

You might be interested in
Productivity is the
Lunna [17]

Answer:

The correct answer is option a.

Explanation:

Productivity can be defined as a measure of the efficiency of a person, factory, machine, system, etc, to convert inputs into outputs. In other words, it is the rate of output per unit of input.  

Productivity is an important determinant of living standards. A higher level of productivity means better living standards. This implies that growth in productivity is the key determinant of growth in living standards.

5 0
3 years ago
On July 1, 2013, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the time, Farm Fresh estimated th
DochEvi [55]

Answer:

I think last option

6 0
3 years ago
Read 2 more answers
Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease
Semenov [28]

Answer:

The company should purchase the machine.

Explanation:

Note: The complete question is attached below

Forecasted contribution margin income statement

For the Year Ended December 31

Particulars                                       Amount$

Sales                                                2,440,000

Variable cost(10,000*185(195-10))  <u>1,850,000</u>

Contribution margin                        590,000

Fixed cost (327,600+42,500)         <u>370,100</u>

Income                                              <u>$219,900</u>

Because the income increase by $57,500 due to the pruchase, the company should purchase the machine

8 0
2 years ago
Interest rates are expressed as a percentage of
Tomtit [17]
Basically, an interest rate is an amount that is added on top of the principal amount most especially in loans. This is expressed in a form of percentage, depending on the amount and interest rate being agreed upon. The answer for this would be the second option. Hope this helps.
6 0
3 years ago
Read 2 more answers
Explain the difference between what health insurance covers and what long term disability insurance covers
OLEGan [10]

Answer:

In essence, health insurance benefits enable employees to seek needed medical care. Disability insurance replaces a portion of employee income when they can't work because of an illness or disability. For the most part, disability insurance will not replace all of someone's income.

Explanation:

4 0
2 years ago
Other questions:
  • Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soup an
    10·1 answer
  • n spreadsheet programs, labels and constant values are always copied exactly to the new location; what happens to formulas when
    10·1 answer
  • Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans pro
    6·1 answer
  • The _____ is everything outside an organization's boundaries that might affect it.
    14·1 answer
  • The only way workers in industrialized countries can compete with their counterparts in the developing world will be through:
    9·1 answer
  • Claude is a single father with 2 children. He can work as a stock clerk at Supermaxi store for $8 per hour up to 1,500 hours per
    13·1 answer
  • When Ian experiences diminishing marginal utility when buying shirts,
    9·1 answer
  • Ayayai Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cos
    10·1 answer
  • Which type of externality is likely to result from a consumer's decision to purchase a solar-powered vehicle instead of a gas-po
    8·1 answer
  • The principle of exceptions allows managers to focus on correcting variances between.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!