Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020

OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $40.21 and $38.40 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.473 and $0.412 for 2020 and 2019, respectively. OCLOUD CORPORATION Years Ended June 30, 2020, and 2019 (in thousands) Comparative Income Statement 2020 2019 Total revenues Total cost of revenues Total operating expenses $2,292,471 $1,839,262 760,877 570,223 1,181,498 884,482 Net income $272,836 $299,938 Statement of Financial Position 2020 2019 Total assets Total liabilities Common share capital 4 $7,435,933 $5,165,034 3,940,763 3,795,325 1,449,399 809,798 Total shareholders' equity $3,495,170 $1,369,709 Weighted average number of commons shares outstanding 252,275 245,016 There are income taxes that do not appear in the list, that would reduce net income. Calculate the return on shareholders' equity for OCloud in 2020. Note that OCloud's articles of incorporation authorize only common shares. The average return for the shares listed on the Toronto Stock Exchange in a comparable period was 19.8%. (Round answer to 1 decimal place, eg. 15.2%) Return on shareholder's equity eTextbook and Media 11.2 % Calculate earnings per share for the years 2020 and 2019. (Round answers to 2 decimal places, e.g. 15.27.) Earnings per share 2020 eTextbook and Media 2019 per share $ per share Calculate the dividend payout ratio and the dividend yield for 2020 and 2019. (Round answers to 1 decimal place, e.g. 15.2%) Dividend payout ratio Dividend yield 2020 2019 96 % %6 %6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dipifr Diploma In International Financial Reporting Revision Kit

Authors: BPP Learning Media

1st Edition

150973872X, 978-1509738724

More Books

Students also viewed these Accounting questions

Question

5 Explain Complexity, Autonomy and Novelty.

Answered: 1 week ago

Question

=+such as the dirigenti in Italy?

Answered: 1 week ago

Question

=+ Are there closed-shop requirements or practices?

Answered: 1 week ago