The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures. Total assets $300,000 Stockholders' equity—common 150,000 Total stockholders' equity 200,000 Sales revenue 100,000 Net income 25,000 Number of shares of common stock 6,000 Common dividends 5,000 Preferred dividends 7,000 What is the return on common stockholders' equity ratio for Benedict?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.
Total assets
$300,000
Stockholders' equity—common
150,000
Total stockholders' equity
200,000
Sales revenue
100,000
Net income
25,000
Number of shares of common stock
6,000
Common dividends
5,000
Preferred dividends
7,000
What is the return on common stockholders' equity ratio for Benedict?

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