80.2K

Verified Solution

Link Copied!

OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $40.69 and $38.00 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.480 and $0.419 for 2020 and 2019, respectively. OCLOUD CORPORATION Years Ended June 30, 2020, and 2019 (in thousands) Comparative Income Statement 2020 Total revenues $2,292,256 Total cost of revenues 762,037 Total operating expenses 1,183,067 Net income $1,015,362 Statement of Financial Position 2020 Total assets $7,522,299 Total liabilities 3,924,894 Common share capital 1,442,401 Total shareholders' equity $3,597,405 Weighted average number of commons shares outstanding 253,715 2019 $1,819,350 577,400 890,337 $267,919 2019 $5,162,646 3,806,479 820,185 $1,356,167 244,163 * Your answer is incorrect. Calculate the return on shareholders' equity for OCloud in 2020. Note that OCloud's articles of incorporation authorize only common shares. The average return for the shares listed on the Toronto Stock Exchange in a comparable period was 19.8%. (Round answer to 1 decimal place, e.g. 15.2%.) 28.2 % Return on shareholder's equity

Answer & Explanation Solved by verified expert

See Answer