Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
Answer:
$1.3 per share
Explanation:
Data provided in the question:
Number of shares outstanding of TJ = 2,500
Market price = $16.70
Number of shares outstanding of Corner Grocery = 3,000
Price per share of Corner Grocery = $22.50
Cost of acquiring TJ's share = $45,000
Now,
Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding
= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500
= [ $45,000 - $41,750 ] ÷ 2,500
= $3,250 ÷ 2,500
= $1.3 per share
Answer:
Net present value of proposal $168,166
Explanation:
Check attachment
Answer:
The dividend the company just paid is $3.53
Explanation:
The solution to the problem is given as follows.
$48.20 = D1/(.1120 − .0360)
$48.20= D1(0.076)
Making D1 the subject of formula we have.
D1 = $3.66
D0 = $3.66/(1 + .0360)
D0 = $3.53
