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Andru [333]
3 years ago
8

A corporation declares $25 million in net income, $1 million in preferred stock dividends, and $7 million in common stock divide

nds. By how much will shareholders' equity increase on the balance sheet
Business
1 answer:
Maksim231197 [3]3 years ago
4 0

Answer:

$17 million

Explanation:

A corporation declares $25 million as it's net income

The preferred stock dividend is $1 million

The common stock dividend is $5 million

Therefore the amount in which the shareholders stock equity will increase can be calculated as follows

= net income - preferred stock dividend-common stock dividend

= $25 million - $1 million +$7million

= $25 million -$8million

= $17 million

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The Conceptual Framework, ________________, reflects a centrality of affirmed principles, beliefs, and practices that guide the
Komok [63]

Answer:

Model for learning

Explanation:

4 0
3 years ago
Jupiter Explorers has $7,800 in sales. The profit margin is 4 percent. There are 6,100 shares of stock outstanding, with a price
Law Incorporation [45]

Answer:

The company's price–earnings ratio is 36.

Explanation:

Price earning ratio is the ratio of market value of share to earning per share. It shows that how much investors are willing to pay for each dollar of earning of the company.

Profit margin = Net income / sales

0.04 = Net Income / $7800

Net Income = $7800 x 0.04 = $312

Earning Per share = Net Income / number of outstanding shares

Earning Per share = $312 / 6,100 = $0.05

Price earning ratio = Market price of share / Earning per share

Price earning ratio = $1.8 / $0.05 = 36

3 0
3 years ago
Last year, Stumble-on-Inn, Inc. reported an ROE of 19 percent. The firm's debt ratio was 60 percent, sales were $34 million, and
Sonja [21]

Stumble-on-Inn, Inc.'s net income for last year is <u>$3,359,200</u>.

<h3>Data and Calculations:</h3>

ROE (Return on Equity) = 19%

Debt ratio =60%

Sales = $34 million

Capital intensity = 1.30 times

Assets = $44.2 million ($34 million x 1.30)

The Total Debt = $26,520,000 ($44,200,000 x 60%)

The Equity = $17,680,000 ($44,200,000 - $26,520,000)

The Net income = $3,359,200 ($17,680,000 x 19%)

Thus, Stumble-on-Inn, Inc.'s net income for last year is <u>$3,359,200</u>.

Learn more about Net Income at brainly.com/question/21271689

5 0
2 years ago
Based on the following data for the current year, what is the inventory turnover?
GenaCL600 [577]

Answer:

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is being sold or used during a given period of time.

A high inventory turnover means a company is selling goods very quickly and that demand for their product exists. Low inventory turnover means weaker sales and ing demand for a company's products.

Inventory turnover = Cost of goods sold/Average inventory

Average inventory is:

($110,000 + $90,000)/2

=$100,000

Therefore, inventory turnover ratio:

$270,00//$100,000

2.7

3 0
3 years ago
For effective price discrimination to occur, a seller must:
Bess [88]

Answer:

In order for effective price discrimination to occur, the seller must have a downward sloping demand curve.  

Explanation:

The seller must also have at least two identifiable groups of customers with price elasticities of demand for the product, and the seller must be able to prevent customers from reselling the product.

8 0
3 years ago
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