Answer and Explanation:
The computation of the number of common shares outstanding on each cash dividend is shown below:
On Jan 5 = 40,000 shares
On Apr 5, it is
= Share issued - treasury stock shares
= 40,000 - 3,000
= 37,000 shares
On July 5, it is
= Share issued - treasury stock shares
= 40,000 - 3,000
= 37,000 shares
On Oct 5, it is
= Share issued - treasury stock shares
= 47,400 - 3,000
= 44,400 shares
Answer:
ROE = 33.33%
Explanation:
<em><u>return on equity:</u></em>
<em><u>where:</u></em>
Average equity
(140 + 160) / 2 = 150
return on equity : 50 / 150 = 1/3 = 0.3333 = 33.33%
The ROE measures the effectiveness of the managers to generate profit with their current net assets(equity)
This ROE of 33.33% rrepresent that for every dollar of equity the company generates 33 cents of income