Common Stockholders' Profitability Analysis A company reports the following: Net income $1,000,000 Preferred dividends 50,000 Average stockholders' equity 6,250,000 Average common stockholders' equity 3,800,000 Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. (Round percentages to one decimal place.) a.  Return on stockholders’ equity  % b.  Return on common stockholders’ equity  %

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 10BE: A company reports the following: Determine (a) the return on stockholders equity and (b) the return...
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Common Stockholders' Profitability Analysis

A company reports the following:

Net income $1,000,000
Preferred dividends 50,000
Average stockholders' equity 6,250,000
Average common stockholders' equity 3,800,000

Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. (Round percentages to one decimal place.)

a.  Return on stockholders’ equity  %
b.  Return on common stockholders’ equity  %
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