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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%

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Oduvanchick [21]

Answer:

a. 40 % and $630,000

b. $ 270,000

Explanation:

The contribution margin ratio = Contribution ÷ Sales

The dollar sales volume required to break even = Fixed Cost ÷ contribution margin ratio

the margin of safety (in dollars) - company sells 20,000 units = Expected Sales - Break even Sales  

8 0
2 years ago
PLS HELP!!! Credentials are an official verification, from an accredited source, attesting to capability.
romanna [79]

Answer:

False

Explanation:

Credentials are an official verification, from an accredited source, attesting to capability. Credentials are an official verification, from an accredited source, attesting to capability.

6 0
3 years ago
You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills
postnew [5]

Answer: increase

Explanation:

You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills with more IBM stock , the expected portfolio return will increase, ceteris paribus

The expected return for a particular investment are the returns which a an investor expects when he or she invests in a particular investment. In the above scenario, there'll be an increase in the expected portfolio return.

7 0
3 years ago
When should you write a functional (skills) résumé?
stich3 [128]
B. when you are making a career change
6 0
3 years ago
Read 2 more answers
you deposit $6000 in an account earning 2% interest compounded continuously. how much will you have in the account in 10 years?
Gre4nikov [31]

Future Value is $7,327.20

<h3>What is compound interest ?</h3>

Compound interest is the interest on deposits that is computed using both the original principal and the interest accrued over time.

It is thought that the concept of "interest on interest" or compound interest first appeared in Italy in the 17th century. Compared to simple interest, which is just charged on the principal amount, it will cause a sum to grow more quickly.

Money grows more quickly when it is compounded, and compound interest increases as the number of compounding periods increases.

CI formula :  A = P(1 + r/n)^nt

where,

P = principal balance,

r = interest rate,

n = number of times interest is compounded per time period and

t = number of time periods.

To solve this question :

A = P(1 + r/n)^nt

= 6,000 (1 + 0.02/12) 120

= USD 7,327.20

To know more about compount interest, visit :

brainly.com/question/14295570

#SPJ4

4 0
1 year ago
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