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zhuklara [117]
3 years ago
10

The numerator of the return on common stockholders' equity is_____________. a.income before income tax b.operating income minus

interest expense c.net income d.net income minus preferred dividends
Business
1 answer:
elena-s [515]3 years ago
3 0

The numerator of the return on common stockholders' equity is net income minus preferred dividends.

Option d

<u>Explanation:</u>

Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.

<em>Use of return on equity:</em>

  • Isolates common equity returns
  • Can be used to evaluate dividends
  • Evaluates the use of capital by the management

It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.

That is, \text { Net income }-\text { Preference dividends }=\text { Equity available for common stockholder }

Hence, net income minus preferred dividends is the right answer.

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A government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and en
balu736 [363]

The correct answer to this open question is the following.

Here we do not have a question. Just a statement.

What is your question? What do you want to know?

However, trying to help you we can comment on the following.

If the government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and encourage the use of bus and rail services instead, it had to make sure that the impact will have the expected benefits because that could not always be the case.  

Some other considerations need to be made for this to happen. For instance, if the government wants to dissuade people to use their cars, the government has to make sure that the public transportation system is in optimal conditions, it is safe to ride, and can guarantee the transportation times for people to be on time in their jobs.

Otherwise, people will still be driving their cars because they think that using cars is a more safe and better way to travel.

Public transportation also has to comply with strict pollution emissions controls.

3 0
3 years ago
You want a seat on the board of directors of Four Keys, Inc. The company has 265,000 shares of stock outstanding and the stock s
Mila [183]

Answer:

44,167.67 shares

Explanation:

Given that

Number of shares of stock outstanding = 265,000

Sale value per share of stock = $76

Number of seat for election = 5

So by considering the above information, the number of shares needed by using the cumulative voting is

= {shares outstanding ÷ (number of seats + 1) + 1}

= {(265,000 shares ÷ (5 +1) +1}

= 44,167.67 shares

5 0
3 years ago
Which of the following is NOT an example that falls within the four major categories of business environment factors for today's
oksano4ka [1.4K]

Answer:

c. fewer government regulations

Explanation:

  • All except the fewer government regulations on the trade of the companies that affect the today's business environment and the word organization. The globalization and the increased play a major role in the collection of the internal and the external factors the customer needs and the expectations that affect the firm's price availability.
5 0
3 years ago
By law, the financial records of publicly held companies are required to be:________.
antiseptic1488 [7]

Answer:

D) Audited by a certified professional accounting firm.

Explanation:

The Securities and Exchange Commission (SEC) requires that publicly traded corporations file audited quarterly financial reports and annual audited financial reports. The Sarbanes-Oxley Act (2002) is the law that established the current external auditing rules imposed by the SEC. It also established legal responsibilities for CEOs and CFOs regarding the financial statements. If they fail to meet them or provide false information, they may face criminal charges and end in jail.

4 0
3 years ago
The common stock of Water Town Mills pays an annual dividend of $1.84 a share. The company has promised to maintain a constant d
wel

Answer:

The maximum that should be paid for a share of this stock today is $13.53.

Explanation:

The price of a company's stock which pays a constant dividend through out can be calculated using the zero growth model of the Dividend discount model (DDM). The formula for price of the stock today under DDM's zero growth model is,

P0 = D / r

P0 = 1.84 / 0.136

P0 = $13.529 rounded off to $13.53

3 0
3 years ago
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