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
QveST [7]
3 years ago
15

Mann Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January

1, 2017. The following information is available for the company for 2016 and 2017. 2017 2016 Net income $120,000 $100,000 Average stockholder's equity 1,000,000 800,000 Total assets 1,200,000 1,200,000 Current liabilities 100,000 100,000 Total liabilities 360,000 480,000 (a) Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 10.2%.) 2017 2016 Return on common stockholders' equity % %
Business
1 answer:
Yuri [45]3 years ago
5 0

Answer:

Return on equity in 2017 is 12% while that of 2016 is 12.5%

Explanation:

The formula for return on equity is given as net income/equity.

The net income is $120000 for 2017 and $100000 for 2016.

Shareholders' average equity is 1000000 shares in 2017 and 800000 shares in 2016.

                                                              2017                                  2016

Return on equity                            120000/1000000             100000/800000

Return on equity                             0.12                                     0.125

The return on equity is 12.0% in 2017 and 12.5% in 2016.

From all indications, the issue of additional shares to the tune of $120000  lead to a reduction in return on equity in 2017 by 0.5%

You might be interested in
A group is a number of people who
Zolol [24]

Answer:

A group of people or things is a number of people or things which are together in one place at one time.

7 0
3 years ago
Jorge Cabrera paid $980 for a 15-year bond 10 years ago. The bond pays a coupon of 10 percent semiannually. Today, the bond is p
Setler79 [48]

Answer:

10.64%

Explanation:

For computing the realized yield, we applied the RATE formula i.e to be shown in the attachment below:

Given that,  

Present value = $980

Future value or Face value = $1,054.36  

PMT = 1,000 × 10% ÷ 2 = $50

NPER = 10 years × 2 = 20 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

After applying the formula, the realized yield is

= 5.32% × 2

= 10.64%

5 0
3 years ago
When the activity level declines within the relevant range, what should happen with respect to the fixed cost per unit and varia
viktelen [127]

Answer:

The correct answer is option C.

Explanation:

The fixed costs are the cost that does not vary with the level of output. It does not vary with the level of activity. The total fixed cost remains constant in the entire production process.

The fixed cost per unit is the ratio of total fixed cost and level of output. It decreases as the output level increases and rises with a decline in activity.

The variable cost is the cost that is incurred on the variable inputs used in the production process. It directly varies with the volume of activity. The total variable cost will increase with the increase of output as more variable inputs are employed.

The variable cost per unit is the cost incurred on each unit of output. It does not change with the level of activity unless there is a change in input prices.

8 0
3 years ago
Which business letter feature is found at the top of the page?
kvv77 [185]

Answer:

Return address apex :) GoodLuck

Explanation:

8 0
3 years ago
You want employees to know that they can talk to retirement planning specialists. Which of the following statements is most like
eimsori [14]
It would have to be B
7 0
3 years ago
Other questions:
  • The Verizon CEO stated, "Corporate responsibility starts with a belief that what you do is important to society. This belief is
    13·1 answer
  • Pakistan’s GDP in 2010, using the official exchange rate on 1/1/2010, is equal to $300 billion USD ($300,000,000,000). When 2010
    9·1 answer
  • If two firms producing substitutes agree to fix prices, then their prices will 1.____________ . If two firms producing complemen
    15·1 answer
  • When a firm is operating at an efficient scale,
    14·1 answer
  • What are the two components needed for successful lobbying?
    15·1 answer
  • 1. A computer game that can be purchased online and played right away has good ___ utility. A) form. B) info. C) value. D) time
    15·1 answer
  • Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is
    5·1 answer
  • If a bank’s assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is _________________
    6·1 answer
  • First, look up a treaty via the Internet or a book, cite your source, and answer the following questions in a report of at least
    9·1 answer
  • If you help with my question i will get you brainlist
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!