A company reports the following: Net income $133,720 Preferred dividends 12,060 Average stockholders' equity 1,064,390 Average common stockholders' equity 887,500 Round percentages to one decimal place.

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 10BE
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A company reports the following:

Net income $133,720
Preferred dividends 12,060
Average stockholders' equity 1,064,390
Average common stockholders' equity 887,500

Round percentages to one decimal place.

a. Determine the return on stockholders' equity.
fill in the blank 1%

b. Determine the return on common stockholders' equity.
fill in the blank 2%

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