Explain why the return on shareholders equity provides information on the rate of return to common shareholders

Question:

Explain why the return on shareholders’ equity provides information on the rate of return to common shareholders only.

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

Step by Step Answer:

Related Book For book-img-for-question

Understanding Financial Accounting

ISBN: 978-1118849385

1st Canadian Edition

Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald

See More Books

Question Posted: Jun 12, 2015 01:32 AM

See More Questions

Explain why the return on shareholders' equity provides information on the rate of return to common shareholders only.
Explain why the return on equity of a company that has no preferred stock will be smaller than the return on equity of an otherwise similar firm that has preferred stock.
Explain why the return associated with an investment includes both the income paid by the issuer and the change in value associated with the investment.
Figure shows a hypothetical speed distribution for particles of a certain gas: P(v) = Cv2 for 0 v0. Find (a) An expression for C in terms of v0, (b) The average speed of the particles, and (c) Their...
In 2014, Paul, who is single, has a comfortable salary from his job as well as income from his investment portfolio. However, he is habitually late in filing his federal income tax return. He did not...
what are the solutions?
15. You are going to borrow $250m at a floating rate for 5 years. You wish to protect yourself against borrowing rates greater than 10.5%. Using each tree, what is the price of a 5-year interest rate...
Royalton Bookstore ordered 1,000 copies of an introductory physics textbook from Prentice Hall on July 17, 20X0. The books were delivered on August 12, at which time a bill was sent requesting...
why would an investor write an equity put option
Meredith Ward is the assistant chief accountant at Frazier Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the...
Identify four different accounts that could be found in the shareholders equity section of the statement of financial position. Briefly explain what each represents.
Explain what the term IPO means and how that is related to the form of the organization.
A heat engine receives heat at a rate of 3000 kJ/min from a reservoir at 1000 K and rejects the waste heat to the atmosphere at 300 K. If the engine produces 20 kW of power, determine (a) The thermal...
In your opinion, do you feel the Six Pillars apply primarily to business-to-consumer marketing, business-to-business marketing, or both?
Place yourself in context; You're working, trying to do well, running into all sorts of organizational constraints. First, describe a scenario to illustrate one of the eight organizational...
what ways do mindfulness-based stress reduction (MBSR) techniques contribute to reducing stress, and what are their limitations ?
How do search engines understand "user experience" to evaluate organic rankings?
How do you think a risk manager might work through a difference of opinion with a unit manager? Explain in details.
The equivalent number of binary joints of a quaternary joint are: (a) 2 (b) 3 (c) 4 (d) 5
What mass of H2 will be produced when 122 g of Zn are reacted? Zn(s) + 2HCl(aq) ( ZnCl2(aq) + H2(g)
What factors could cause you to reject an offer from a potential licensee to make and market your firms products in a foreign market?
Toys R Us, Inc., is the worlds largest toy retailer, with sales of nearly $12 billion in 1999. It has been challenged in recent years, particularly in e-commerce, losing market share from 20.2...
Maytag Corporation is the established manufacturer of washing machines, dryers dish washers, and other home appliances-including the venerable Hoover vacuum cleaner. But in 2004 and 2005, the firm...
Fruit of the Loom Ltd. fared poorly from 1997 to 1999. Between April 1997 and October 1999, its stock price dropped from $38 to $3, a 92 percent loss in market value. Fruit of the Loom manufactures...
3. The nominal interest rate compounded monthly when your $7,000 becomes $11,700 in eight years is ________
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a...
Advanced Small Business Certifica Drag and Drop the highlighted items into the correct boxes depending on whether they increase or decrease Alex's stock basis. Note your answers- you'll need them for...

Explain why the return on shareholders equity provides information on the rate of return to common shareholders

Question:

Step by Step Answer:

The return on shareholders equity ROE provides information on the rate of return earned by common sh...View the full answer

Understanding Financial Accounting

Students also viewed these Accounting questions