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trapecia [35]
3 years ago
12

Average common stockholders’ equity $3,015 $3,090 Dividends declared for common stockholders 365 655 Dividends declared for pref

erred stockholders 40 40 Net income 685 730 Calculate the payout ratio and return on common stockholders’ equity ratio for 2017 and 2016

Business
1 answer:
zimovet [89]3 years ago
6 0

Answer:

<u>Year 2016</u>

Payout ratio

= (Dividends Paid to Common Stockholders/ Net Income) * 100

= 655/730 * 100

= 89.7%

Return on Common Stockholder's Equity

= ((Net Income - Preferred Stock Dividend) / Average Common Stockholder's Equity) * 100

= ((730 - 40)/ 3,090) * 100

= 22.3%

<u>Year 2017</u>

Payout ratio

= (Dividends Paid to Common Stockholders/ Net Income) * 100

= 365/ 685 * 100

= 53.3%

Return on Common Stockholder's Equity

= ((Net Income - Preferred Stock Dividend) / Average Common Stockholder's Equity) * 100

= ((685 - 40)/ 3,015) * 100

= 21.4%

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<span> <span>Monetary policies refer to actions that are taken by governments (or the duly appointed monetary regulatory committees in a country) to control the behavior of the economy. Monetary policies can be divided into two: contractionary and expansionary. When an expansionary monetary policy is implemented, the amount of money in circulation (in a country) is increased through lowering of interest rates. The ultimate effect of this is that business and consumer spending goes up (loans are easily available), unemployment rates drop and the economy grows. Contractionary measures are introduced through raising interest rates thereby liquidity (availability of money in the economy) is reduced. As a result, consumer spending reduces and so inflation is kept within sustainable levels.</span></span>
8 0
4 years ago
Shane is a newly hired inventory manager at a manufacturing firm. What can he do to avoid shortages or excess quantity of invent
vovangra [49]

Answer:

take inventory on how much product he has and how much he needs

Explanation:

6 0
3 years ago
Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. Record this transaction in the
OLga [1]

Answer:

Explanation:

The accounting equation is shown below:

Total assets = Total liabilities + Shareholder's equity

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It gives a positive impact on office equipment under fixed assets and a negative impact on the cash balance under the current assets.

8 0
4 years ago
On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable
lisov135 [29]

Answer:

C. $56,700

Explanation:

From the accounting equation which shows the relationship between the elements of a balance sheet namely;asset, liabilities and equity.

Asset =  liabilities + equity

Total assets = $15,000 + $12,300 + $3,100 + $35,000 = $65,400

Total liabilities = $8,700

Stockholders’ equity = $65,400 - $8,700

= $56,700

The stake of the owners of the company is $56,700

5 0
3 years ago
When joe maximizes utility, he finds that his mrs of x for y is greater than px/py. it is most likely that:?
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<span>When joe maximizes utility, he finds that his mrs of x for y is greater than px/py. it is most likely that: </span><span>joe is not consuming good Y
For normal utility maximation, MRS should equal with px/py. So, in this case, we can conclude that when Joe maximizes his utility, he only consume product X over product Y</span>
5 0
3 years ago
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