Common Stockholders' Profitability Analysis A company reports the following: Net income $255,000 Preferred dividends 10,200 Average stockholders' equity 2,125,000 Average common stockholders' equity 1,171,292 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

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
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Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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Common Stockholders' Profitability Analysis

A company reports the following:

Net income $255,000
Preferred dividends 10,200
Average stockholders' equity 2,125,000
Average common stockholders' equity 1,171,292

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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