Reference no: EM132855310
Question - Sheridan Company has $1,200,000 in assets and $1,200,000 in stockholders' equity, with 42,200 shares outstanding the entire year. It has a return on assets of 15%. During 2021, it had net income of $180,000. On January 1, 2022, it issued $375,000 in debt at 4% and immediately repurchased 21,100 shares for $375,000. Management expected that, had it not issued the debt, it would have had net income of $180,000 in 2022. Assume the company pays dividends on common stock equal to its net income each year. Also, assume the accrued interest on the debt was paid at December 31, 2022 and the company has no other debt outstanding at year-end.
Required -
1. Determine the company's net income and earnings per share for 2021 and 2022.
2. Compute the company's return on common stockholders' equity for 2021 and 2022.
3. Compute the company's debt to assets ratio for 2021 and 2022.
|
Describe trends that make family less important in life
: shows how this is not the case. Describe some of the trends that make family less important in the day-to-day life of the average American.
|
|
How much is the purchase price of the bonds on January
: The bonds were acquired to yield a 12% and is to be accounted as financial asset at amortized cost. How much is the purchase price of the bonds on January
|
|
What approaches to study of poverty does economic sociology
: What approaches to the study of poverty does economic sociology offer? More specifically, what might sociologists studying poverty focus on besides
|
|
Find the expectation of the game
: If it is a red face card, she wins $25; and if it is a black jack, she wins an extra $100. Find the expectation of the game.
|
|
Compute the company debt to assets ratio
: On January 1, 2022, it issued $375,000 in debt at 4% and immediately repurchased 21,100 shares for $375,000. Compute the company debt to assets ratio
|
|
Select a disadvantaged or vulnerable population
: Select a code of ethics that might be applicable to this population, and identify specific guidelines that might guide your work with this population
|
|
Which of the following does not belong to the group
: What constitutes the chosen ones through which you will derive facts and evidence to support the claims or conclusions propounded by your research problem?
|
|
What could get involved in working with the organization
: If you wanted to get a job with the organization in the future, what would you need to do to prepare? Would you need any specialized training?
|
|
What is the foh
: Minimum guaranteed wage is 10,000. Assuming a laborer was paid 100 per piece / or per unit. During the period, laborer worked 90 units. What is the FOH
|