A Company Reports Basic Earnings Per Share of $3

question 93

True/False

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equal is equal to 21.4%.

Understand the concept and application of financial structure leverage ratios.

Grasp the benefits and risks of financial leverage for a company.

Recognize the importance of customer loyalty and cost control in company strategies.

Learn how to compute and interpret Return on Assets (ROA) considering nonoperating or nonrecurring items.

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Definitions:

Journal Entry

An accounting record that documents a business transaction in the ledger, specifying the accounts affected and the amounts.

Posted Twice

Accidentally recording a financial transaction or entry in the accounting records more than once, which can lead to discrepancies and require correction.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to verify that the total debits equal total credits.

Compound Journal Entry

A compound journal entry is an accounting entry which involves more than two accounts, recording multiple debits and/or credits in a single transaction.