Answer:
Return on equity.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time
To avoid the problem of having to forecast and discount an infinite number of dividends, we must require that the dividends start to grow at a fixed rate in the future.
<h3>What are dividends?</h3>
Dividends are payments made by a company to its shareholders. This money is taken from the total profits made by the company. The remaining money after the payment of dividends goes to re-investment in order to grow the company.
Therefore, we can confirm that in order to avoid the problems presented in the question regarding dividends, we must require that they grow at a fixed rate in the future.
To learn more about profit visit:
brainly.com/question/1494270?referrer=searchResults
Answer: $164,300
Explanation:
Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.
= Beginning dividends payable + Dividends for the year - Ending dividends
= 43,200 + 160,000 - 38,900
= $164,300
Answer:
B. $1673920
Explanation:
First calculate Total loss
$2000000 loss from disposal of a component of the business and loss of $92400 from strike by the employees of a supplier
$2000000 + $92400 = $2,092,400
20% of the loss =
20% × $2,092,400
= $418,480
Therefore the effect of these events and transactions on 2020 net income net of tax would = Total loss - 20% of total loss
$2,092,400 - $418,480
= $1,673,920
Answer:
Option D. Portability Rule
Explanation:
The Portability rule says that if the estate tax exemption was not fully utilized at the time of the other spouse's death then the rule allows the surviving spouse to use the remainder unused estate tax exemption if left unused. So basically this rule gives the person maximum chance to obtain the benefit of utilization of estate tax exemptions.
