The stockholders' equity accounts of Martinez Corp. on January 1, 2022, were as follows.Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized)Common Stock ($4 stated value, 300,000 shares authorized)Paid-in Capital in Excess of Par Value-Preferred StockPaid-in Capital in Excess of Stated Value-Common StockRetained EarningsTreasury Stock (5,000 common shares)During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity.Feb. 1 Issued 5,000 shares of common stock for $30,000.Mar. 20Oct. 1Nov. 1 Paid the dividend declared on October 1.Dec. 1$300,0001,000,00015,000480,000689,00040,000Dec. 31Purchased 1,000 additional shares of common treasury stock at $8 per share.Declared a 7% cash dividend on preferred stock, payable November 1.Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31,2022.Paid the dividend declared on December 1. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common sharesoutstanding on January 1 and December 31 to determine the average shares outstanding.) (Round earning per share to 2 decimalplaces, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.)Payout ratioEarnings per shareReturn on common stockholders' equity%%

Payout Ratio: The payout ratio is calculated by dividing the total dividends by the net income.Total…

Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%) Payout ratio Earnings per share Return on common stockholders' equity %

Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%) Payout ratio Earnings per share Return on common stockholders' equity %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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