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
Aleonysh [2.5K]
3 years ago
11

Kong Inc. reported net income of $298,000 during 2018 and paid dividends of $26,000 on common stock. It also has 10,000 shares o

f 6%, $100 par value cumulative preferred stock outstanding. Common stockholders' equity was $1,200,000 on January 1, 2018, and $1,600,000 on December 31, 2018. The company's return on common stockholders' equity for 2018 is:
Business
1 answer:
julsineya [31]3 years ago
3 0

Answer:

17%

Explanation:

The actual return which stockholder receives on the average common equity is return on common stockholder's equity.

Return on Common Stockholder Equity = (Net Income - Preferred dividend) / Average common stockholders equity

Return on Common Stockholder Equity = ($298,000 - (10,000 x $100 x 6%) / ( ( $1,200,000 + $1,600,000 ) / 2 )

Return on Common Stockholder Equity = ($298,000 - $60,000) / $1,400,000

Return on Common Stockholder Equity = 0.17 = 17%

You might be interested in
Which of the following activities create positive externalities? Group of answer choices An excavation firm pollutes a local str
Blizzard [7]

Answer:

The activities that creates positive externalities among the options include:

  1. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place.
  2. You and your friends volunteer to plant wildflowers along the local highway.

Explanation:

Positive Externality occurs when the consumption or production of a good causes a benefit to a third party.

Take for instance, Government grants and subsidies to producers of goods and services that generate external benefits will reduce costs of production, and encourage more supply.

The positive externalities includes supply of merit goods such as healthcare, education, and social housing.

  1. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. The positive externality here is easy access to transport.
  2. You and your friends volunteer to plant wildflowers along the local highway. This will cause your relationship with your friends  to blossom and when the plants grow, it will purify the air and beautify the environment.
7 0
2 years ago
Consider the market for a breakfast cereal. The​ cereal's price is initially ​$3.003.00 and 7070 thousand boxes are demanded per
arlik [135]

Answer:

0.539

Explanation:

Price elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.

Under mid-point method the price elasticity can be calculated as follow

where

S = Quantity

P = Price

Change in Quantity = ( S2 - S1 ) / [ ( S2 + S1 )/2 ]

Change in Quantity = ( 6,060 - 7,070 ) / [ ( 6,060 + 7,070 )/2 ]

Change in Quantity = -1,010 / 6,565

Change in Quantity = -0.153846

Change in price = ( P2 - P1 ) / [ ( P2 + P1 )/2 ]

Change in price = ( $4,004 - $3,003 ) / [ ( $4,004 + $3,003 )/2 ]

Change in price  = $1,001 / $3,503.5

Change in price  = 0.285714

Elasticity of Supply = Change in Quantity / Change in Price

Elasticity of Supply = -0.153846 / 0.285714 = -0.5385

Elasticity of Supply = -0.539

3 0
2 years ago
A construction company entered into a fixed-price contract to build an office building for $32 million. Construction costs incur
Delicious77 [7]

Answer:

company gained a gross profit of $2 million

Explanation:

Data provided in the question;

Contract price to build an office = $32 million

Construction costs incurred during the first year = $9 million

Estimated costs to complete at the end of the year = $21 million

Therefore,

Total cost incurred to complete the construction of the office at the end of the first  year

=  Construction costs incurred during the first year + Estimated costs to complete at the end of the year

= $9 million + $21 million

= $30 million

Thus,

The revenue generated by the company = Contract price - cost incurred

= $32 million - $30 million

= $2 million

since the revenue is positive, hence the company gained a gross profit of $2 million

8 0
3 years ago
Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs
Anna11 [10]

Answer:

a. 80,000 units

b. 95,000 units

Explanation:

The computation is shown below:

a.The anticipated break-even sales (units) is

As we know that

Break even point in units   = Total fixed cost ÷ Contribution margin per unit

= $27,600,000 ÷  $345    

= 80,000 units

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

= $1,150 - $805    

= $345

b. The units for realize operating income is

Unit sales for target profit   = (Fixed expense + Target profit) ÷ Contribution margin per unit

= ($27,600,000 + $5,175,000) ÷ $345    

= $32,775,000 ÷ $345    

= 95,000 units

3 0
3 years ago
The relationship between the future value of a single sum and the corresponding present value of a single sum is determined by t
Schach [20]

Answer:

D

Explanation:

interest rate per compounding period​ ; number of compounding periods

5 0
2 years ago
Other questions:
  • The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $220,0
    6·1 answer
  • Identify which of the following statements is true. A) Tax planning is an integral part of both closed-fact situations and open-
    7·1 answer
  • A parcel of real estate has been left to a spouse through her husband's will for the wife's use and enjoyment during her lifetim
    5·1 answer
  • As the percentage of the consumer's income accounted for by a particular good decreases, demand for the good will:
    15·1 answer
  • ______ is the use of a variety of statistical analysis tools in marketing research to uncover previously unknown patterns in dat
    8·1 answer
  • Lang Warehouses borrowed $131,300 from a bank and signed a note requiring 9 annual payments of $15,328 beginning one year from t
    13·1 answer
  • Lisa’s Custom Print Services produces and sells custom seashore prints. The manager reported $5,400 in fixed expenses, operating
    8·1 answer
  • Described below are certain transactions of Crane Company for 2021:
    9·1 answer
  • In its first month of operations, Giffin Company made three purchases of merchandise in the following sequence: (1) 300 units at
    13·1 answer
  • Which information would most likely cause a company's stock price to go up?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!