Calculate the rate of return on common shareholders equity

Assignment Help Accounting Basics
Reference no: EM132706072

Question - Novak Inc. had net income for 2021 of $2,180,000. The company had 770,000 of common shares outstanding throughout the year. During 2021, Novak paid $0.05 dividends per common shares. The average common shareholder equity was $8,778,000, and the market value of the shares on December 31, 2020 was $8 per share.

Novak Inc. also had 290,000 shares outstanding of cumulative, $3, no-par value preferred shares. The shares were outstanding for the full year, and dividends had been paid in all previous years.

Required - Calculate the following ratios for Novak Inc., and round answers to 2 decimal places:

1. Rate of return on common shareholders' equity

2. Payout ratio

3. Price earnings ratio

4. Book value per share

Reference no: EM132706072

Questions Cloud

Determine its break-even point in sales units : If the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product
Human resource managers must constantly evaluate : Human resource managers must constantly evaluate whether their hiring practices are consistent with current trends and expectations of positions to be filled
Calculate the p and l or financial performance after tax : How do Calculate the P&L(financial performance after tax) and the break even point in units. Fixed Manufacturing Costs (Exl Depreciation) $28,000.00
What types of leaders are required in dangerous occupations : What types of leaders are required in dangerous occupations? Why? How do emergency response leaders differ from public policy leaders? Explain.
Calculate the rate of return on common shareholders equity : Novak Inc. also had 290,000 shares outstanding of cumulative, $3, no-par value preferred shares. Calculate the rate of return on common shareholders equity
Prepare journal entries to record the intragroup transaction : Prepare journal entries to record the intragroup transactions. In April 2016, Koala Ltd sells inventory to Kangaroo Ltd for $10 000. This inventory had previous
How do prepare the required adjusting journal entry at end : Kingbird Ltd., Assuming Kingbird follows IFRS, prepare the required adjusting journal entry at the end of the reporting period.
What amount should Lorange recognize : The amount the company will have to pay is between $ 500,000 and $ 700,000, what amount, if any, should Lorange recognize as a liability related to this lawsuit
Private sector-first responders and volunteer experience : How do you think the perception of first-responder jobs has changed since September 11, 2001? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a depreciation schedule for the asset showing

clary jensen farms purchased power equipment with an expected useful life of four years or 1000 hours of usage. the

  Prepare the appropriate journal entries for quickstream

On January 1, 2018, QuickStream Communications leased telephone equipment from Digium, Inc. Digium's cash selling price for the equipment is $1,607,604.

  Advantage of using a single plant wide factory

The greatest advantage to using a single plant wide factory overhead rate is:

  Harmon household products inc manufactures a number of

harmon household products inc. manufactures a number of consumer items for general household use. one of these products

  Determine the dollar amount of dividends that was paid

No additional shares of preferred stock were issued during fiscal years 2017&2018. Use information to determine the dollar amount of dividends that was paid

  Which is the correct total of susan equity

On her most recent balance sheet, her liabilities total $4,500 and her assets total $28,500. Which of the following is the correct total of Susan's equity

  Prepare a differential analysis on whether to sell rough cut

Prepare a differential analysis on whether to sell rough cut or finished cut lumber

  What are delta unlimited company ratios for current ratio

What are Delta Unlimited Company's ratios for the following: Current Ratio and Quick Ratio

  How many pounds of steel powder does Ardel Co need

How many pounds of steel powder does Ardel Co. need to purchase during September if Ardel plans to manufacture 153,000 units of Zbox in September

  Calculate hotel-s phone bills for january and february

A hotel pays the phone company $200per month plus $.15 for each call made. During January 7,000 callswere made. In February 8,000 calls were made. Calculate the hotel's phone bills for January and February.

  Speedo companys revenues are 300 on invested capital of 240

1. speedo companys revenues are 300 on invested capital of 240. expenses are currently 70 of sales. if angelo company

  Journal entries for harper company

Prepare journal entries to record the following transactions entered into by Harper Company:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd