Lance Corporation Had a Return on Equity of 20

question 64

Short Answer

Lance Corporation had a return on equity of 20%.The company earned net income of $2,500,000 during the year.There were 200,000 shares of common stock outstanding throughout the year and no preferred stock at any time.Calculate average common shareholders' equity.

Understand the impact of common stock transactions, including dividends, stock splits, and reverse stock splits, on shareholder value.

Calculate the new stock price and shareholder equity after specific corporate actions such as stock dividends, stock splits, and reverse splits.

Analyze the effect of dividend policies and specific dividend actions on stock price and shareholder wealth.

Understand the concept of market value versus book value and the factors that influence both.

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Definitions:

Substance

The essential part or core of something, as opposed to its form or external attributes.

Remedy in Equity

A court-ordered resolution based on fairness to resolve a legal issue, often when monetary damages are insufficient.

Common Law Remedy

Refers to solutions or compensations provided through court judgments, based on principles and precedents in common law, as opposed to statutes.

Civil Law Remedy

Legal solutions provided through the civil justice system, aimed at resolving non-criminal disputes between parties.