Question
A company has a net income of $80,000 and total equity of $400,000. The company plans to pay a dividend of $20,000 to its shareholders.
A company has a net income of $80,000 and total equity of $400,000. The company plans to pay a dividend of $20,000 to its shareholders. What will be the company's new return on equity (ROE) and earnings per share (EPS) if it has 20,000 shares outstanding?
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The detailed answer for the above question is provided below Return on Equity ROE is calculated as ...
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Intermediate Accounting
Authors: Kin Lo, George Fisher
Volume 1, 1st Edition
132612119, 978-0132612111
