Common Stockholders' Profitability Analysis A company reports the following: Net income $120,000 Preferred dividends 4,800 Average stockholders' equity 1,016,949 Average common stockholders' equity 533,333 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 % b. Return on Common Stockholders' Equity 50 %
Common Stockholders' Profitability Analysis A company reports the following: Net income $120,000 Preferred dividends 4,800 Average stockholders' equity 1,016,949 Average common stockholders' equity 533,333 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 % b. Return on Common Stockholders' Equity 50 %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 66P
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