In 2019 Ayayai Corp Has 1 410 000 In Assets And 1 410 000 In Stockholders Equity With 50 000 Shares Outstanding The 1 (97.47 KiB) Viewed 12 times
In 2019 Ayayai Corp. has $1,410,000 in assets and $1,410,000 in stockholders' equity, with 50,000 shares outstanding the entire year. In the past year it had net income of $76,000. On January 1, 2020, it issued $380,000 in debt at 5% and immediately repurchased 20,000 shares for $380,000. Management expected that, had it not issued the debt, it would again have had net income of $76,000. Determine the Company's net income and earnings per share for 2019 and 2020. (Ignore taxes in your computations.) 2019 2020 Net income $ $ Earnings per share (Round 2 decimal places, e.g. 1.25.) $ $ Compute the Company's return on common stockholders' equity for 2019 and 2020. (Round answers to 1 decimal place, e.g. 5.2%.) 2019 2020 Return on common stockholders' equity % %
Compute the company's debt to assets ratio for 2019 and 2020. (Round answers to O decimal places, e.g. 25%. If answer is zero please enter O, do not leave any fields blank.) 2019 2020 Debts to assets ratio % %
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