A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is:

Question:

A company has taxable income of $1,760 with a tax rate of 38 percent. Owner’s equity is: $400 in stock, $200 in capital surplus, and $200 in retained earnings. What is the return on equity (ROE)?

a. 130%

b. 125%

c. 123%

d. 136%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

See More Books

Question Posted: Jan 10, 2013 07:12 AM

See More Questions

A corporation has taxable income of $1,500,000. If it distributes its after-tax income to its shareholders whose dividend tax rate is 15 percent, what are the total tax and the combined effective tax...
Determine taxable income in each of the following independent cases. In all cases, the company was very profitable in all years prior to 2017 and it had retained earnings of $1,000,000 at the end of...
The Pigalle Corporation has taxable income of $450,000. Determine its tax liability. If the corporation's alternative minimum taxable income is $902,000, what is its alternative minimum tax?
1 Which branch of our government makes our laws? A O All choices Judicial Legislative Executive
Regis deposits $5000 into an account for his 10-year-old child. The account has an annual interest rate of 8.5%, compounded monthly. a. What regular monthly deposit amount is needed to make the...
https://docs.google.com/spreadsheets/d/1m_et2P4GwxPFSNZZSJOhFBqJXIBclSvY/edit?usp=sharing&ouid=107743399493753016402&rtpof=true&sd=true...
Think about a change you attempted this year in school (such as a change in study habits, your social life, or your extracurricular activities). Identify the status quo before you made the change....
Color Graphics (CG) specializes in printing glossy magazines. CG currently has orders for four magazines, with each magazine being issued on its own cycle. With the four magazines, CGs capacity is...
onnectmoucation.com/flow/connect.html Help Save & Exit The Miller Company reported gross sales of $890,000, sales returns and allowances of $5,400 and sales discounts of $5,400. The company has...
Lane is an employee in the office of Salvaggio & Wheelers, Attorneys at Law, who received the following benefits during 2022: Medical insurance: $250 per month Commuter pass: $500 per month ...
Find the required return for a stock, given that the current dividend is $4.25 per share, the dividend growth rate is 6.5 percent, and the stock price is $101.00 per share. a. 10.98% b. 9.91% c....
Magiclean Corporation is considering the acquisition of Dustvac Company. Dustvac has a capital structure consisting of $5 million (market value) of 11% bonds and $10 million (market value) of common...
Executive stock options are often seen as a simple and effective solution to the other peoples money problem that can occur when managers with little ownership interest mismanage firm investment...
Question: Divide.21r7-35r37r3r8-5r43r7-5r33r6-5r221r6-35r2 Divide. 2 1 r7 - 3 5 r3 7r 3r 8 - 5 r4 3 r7 - 5 r3 3 r6 - 5 r2 2 1 r6 - 3 5 r2 Divide. 21r7 - 35r 7r 38-54 3r7-53 3r6-52 216-3512
System of Equations: Value of a Value of b 9 a + 3 b = 3 0 8 a + 4 b = 2 8
An important practice is to check the validity of any data set that you analyze. One goal is to detect typos in the data, and another would be to detect faulty measurements. Recall that outliers are...
ve The re e Problem 3 Complete the following perpetual inventory form. Perpetual Inventory Total Product Name: Purchase Unit Size: Carried Forward: Date In Out 1/7 3 Balance 1/9 1/10 1/12 1/15 2 1 5...
the above date, Saloni was admitted in the partnership firm. Raman surrendered th 5 2 of his share and Rohit surrendered th 5 1 of his share in favour of Saloni. It was agreed that : (i) Plant and...
FastChips Semiconductors has inventory days of 83, accounts receivable days of 45, and accounts payable days of 75. What is its cash conversion cycle?
Find the work done in pumping all the oil (density S = 50 pounds per cubic foot) over the edge of a cylindrical tank that stands on one of its bases. Assume that the radius of the base is 4 feet, the...
Chinas prosperity brings income gap The Asian Development Bank [ADB] reports that China has the largest gap between the rich and the poor in Asia. Ifzal Ali, the ADBs chief economist, claims it is...
Name the steps of the accounting cycle.
Name the steps of the accounting cycle.
On December 31, 2016, the ledger of Hernandez Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 4 as the general journal...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows:...
1-When accounting for an acquisition, goodwill is the difference between what two things? 2- What factors should be considered when deciding whether an acquisition should be financed with cash or...
What is the main friction Fluidity aims to address? REAL STATE

A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is:

Question:

Step by Step Answer:

Computation of the ROE ...View the full answer

Financial Accounting A User Perspective

Students also viewed these Corporate Finance questions