Common Stockholders' Profitability Analysis A company reports the following: Net income $150,000 Preferred dividends 6,000 Average stockholders' equity 1,079,137 Average common stockholders' equity 679,245 Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity fill in the blank 1 % b. Return on Common Stockholders’ Equity fill in the blank 2 %
Common Stockholders' Profitability Analysis A company reports the following: Net income $150,000 Preferred dividends 6,000 Average stockholders' equity 1,079,137 Average common stockholders' equity 679,245 Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity fill in the blank 1 % b. Return on Common Stockholders’ Equity fill in the blank 2 %
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
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Common Stockholders' Profitability Analysis
A company reports the following:
Net income | $150,000 |
Preferred dividends | 6,000 |
Average |
1,079,137 |
Average common stockholders' equity | 679,245 |
Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place.
a. Return on Stockholders' Equity | fill in the blank 1 % |
b. Return on Common Stockholders’ Equity | fill in the blank 2 % |
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