Stockholders' Equity (Assignment 10) Assignment Example | Topics and Well Written Essays - 500 words

Stockholders' Equity ( 10) - Assignment Example Common stock Authorized The most significant change was the change in comprehensive income whereby Pentair, Inc. recorded an overwhelming percentage of 576.94. The other significant change in stockholders equity involved a negative change in the amount of total stockholders’ equity which was recorded at -7.15%. 4. Check here if your firm had no preferred stock outstanding. If your company had preferred stock outstanding at any time during the most recent year, indicate which of the following features apply. Pentair, Inc did not have any preferred stock. f. For characteristics a. through e. that apply to your firms preferred stock, indicate the specifics of that characteristic to your stock. For example, if it is convertible, under what terms can it be converted? If yes, identify the number of shares issued of each type of stock, par value (if any), and total dollar amount received from each issue. Pentair, Inc. issued 98,622.564 shares and collected 15,779,610.24 million dollars. These were class A common stock. Based on the Note about P/E ratios, what does your firms price-earnings ratio tend to indicate about investors expectations regarding the companys future earnings? Pentair, Inc has a high P/E ratio and this boosts investor confidence in the firm. The ratio basically indicates that the company is expected to produce higher earnings for its shareholders. Assuming the dividend yield ratio you just computed has been fairly constant over recent years, briefly explain what this reveals about the cash return an owner receives on his/her investment each year. Do you believe this is a satisfactory return on a stockholders investment? What other source of return (besides dividends) do stockholders earn on their investment? Pentair, Inc. has a low dividend yield on its common stocks. Investors always make money from their investments in stocks in form of both