Common Stockholders' Profitability AnalysisA company reports the following:Net income$210,0008,4001,680,0001,095,652Preferred dividendsAverage stockholders' equityAverage common stockholders' equityDetermine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimalplace.a. Return on Stockholders' Equityb. Return on Common Stockholders' Equity%%

a. Return on Stockholders' Equity -This ratio represents net income earned by the company from the…

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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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What is the total stockholders' equity based on the following data? Common Stock $900,000 Excess of Issue Price Over Par—Common Stock 375,000 Retained Earnings (deficit) (50,000) a.$900,000 b.$1,225,000 c.$1,275,000 d.$1,325,000
Stockholder Profitability Ratios The following information pertains to Montague Corporation: Net income $60,000 Average common equity $1,500,000 Preferred dividends $7,500 Average common shares outstanding 100,000 Required: Calculate the return on common equity and the earnings per share. Round your answers to two decimal places. Return on common equity fill in the blank 1 % Earnings per share $fill in the blank 2 per share
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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%
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round your answer to one decimal place.
Assume a company provided the following information: Earnings per share $ 1.20 Number of common shares outstanding, beginning of the year 45,000 Number of common shares outstanding, end of the year 55,000 Price - earnings ratio 12.50 Dividend yield ratio 4% The dividend per share is closest to: Multiple Choice $1.10. $0.90. $1.20. $0.60.
Earnings per share and price-earnings ratio A company reports the following: Line Item Description Amount Net income $650,000 Preferred dividends $45,000 Shares of common stock outstanding 110,000 Market price per share of common stock $44 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places.fill in the blank 1 of 2$ b. Determine the company's price-earnings ratio.
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Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,340,000 Preferred dividends $76,000 Shares of common stock outstanding 80,000 Market price per share of common stock $132.72 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required.$fill in the blank 1 b. Determine the company's price-earnings ratio. Round to one decimal place.fill in the blank 2

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