Question

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5 percent. Jay Corporation's stockholders' equity to nearest dollar is:

Answer 1

i think you need to compute 12.5 % of earnings after tax

use the formula

x % of something = \[\frac{x}{100}*something\]

Answer 2

plug in

x = 12.5
something = 175,900

Answer 3

can you do it now ?

Answer 4

I am trying it now.

Answer 5

ok.. good :)

Answer 6

I don't get it?

Answer 7

x% of something =\[ \frac{x}{100}*something \]

12.5 % of $175,900 =
\[ \frac{12.5}{100}*175,900 \]

= ?

Answer 8

21,987.50

Answer 9

Is that right? and if it were rounded to the nearest dollar it would be $21,988. ??

Answer 10

wait.. im checking

Answer 11

ok

Answer 12

i got the same answer as u :)
also u r correct after rounding to nearest dollar it is $21,988
Enjoy..

Answer 13

ok thats good these were the choices I was givin.




$140,720





$14,720





$1,407,200





$140,720,000





None of these

Answer 14

none of these is ur answer :)

Answer 15

Thats what I was thinking. But what dose the 100 represent??

Answer 16

whr ?

Answer 17

?

Answer 18

What dose whr mean?

Answer 19

short cuts.. lol.. sorry.
where is 100. . which 100 you asking about ?

Answer 20

12.5
----
100

The 12.5 over 100

Answer 21

ok..
that 100 represents this 12.5 % in decimal form :
12.5 % = 12.5 over 100

just remove the % and divide it with 100

Answer 22

very good question btw :)

Answer 23

OK I got it now! Thank You for your help!! I am sure I will be back shprtly with more questions???? LOL

Answer 24

yw.. :) :)

Answer 25

actually, in the above problem $175,900 is 12.5 % of stock holder's equity.
problem asks us to compute what is the total stock holder's equity.

so the formula becomes :
total equity = (175,900/12.5) * 100
= 1407200

Answer 26

I see. Well I got 8 out of 10 right anyway. :-)

Answer 27

good to hear :) inspite of this messup... great work :):)

Answer 28

Thank You!