answersLogoWhite

0

Net Worth

While there is no doubt that the preference shareholders are the owners of the firm, the real owners are the ordinary shareholders who bear all the risk, participate in the management and are entitled to all the profits remaining after all possible claims of preference shareholders are met in full.

Thus it can be said that,

Average Ordinary Shareholders Equity = Net Worth Of Company

Return on Net Worth = Net Profit After Tax - Preference Dividend

Average Equity of the Ordinary Shareholders Equity or Net Worth

It is probably the single most important ratio to judge whether the firm has earned satisfactory return for its equity shareholders or not. Its adequacy is judge by

8 Comparing with the past records of the same firm

8 Inter-firm comparison

8 Comparison with the overall industry average

User Avatar

Wiki User

15y ago

What else can I help you with?

Related Questions

What taxes do you have to pay to transfer funds to the US from the UK?

Depending on what method you choose you will have to pay taxes according to the amount of money that you are transferring. A wire transfer through western union can have wire charges while a bank transfer would cost you bank charges apart from taxes on the amount. However, in special circumstances gift money is often exempted from taxes.


What state charges more taxes?

Oregon.


How did Brazil achieve economic success?

TAxes , Taxes , Taxes to attract foregning financial investments


Where can I learn to prepare taxes?

Your best option is to probably take a simple financial class online to teach you how to prepare taxes or take a financial class in person that can teach you how to prepare taxes.


How do tour operators calculate package tours?

Drivers charges, parking charges, toll taxes etc.


What is the meaning of offshore charges?

Offshore charges refer to fees or costs associated with financial transactions, services, or accounts that are conducted outside of a person's or entity's home country. These charges may include banking fees, taxes, regulatory costs, or service fees imposed by offshore financial institutions. They often arise in the context of offshore banking, investment accounts, or businesses operating in foreign jurisdictions. Understanding these charges is essential for individuals and companies considering offshore operations to ensure compliance and manage expenses effectively.


Who does taxes at Walmart?

Financial management accounts departments


Can you get financial aid after your taxes were offset for student loans?

no


How taxation is used in real life?

The government charges you taxes; you pay.


Where can I learn about 1040 taxes?

You can get that information on your state website. They will tell you about taxes. This tax will be available. It will have a vivid definition. It is good to know about taxes.


What is the difference between bank charges and government taxes and duties on a bank statement?

Bank charges are fees charged by and received by the bank. Government taxes and duties are fees withheld by the bank and forwarded to the respective government.


Is there any special training on how to file back taxes?

No, you do not need special training to submit back taxes. You simply have to file for that particular year.