Common Stockholders' Profitability Analysis A company reports the following: Net income $215,000 Preferred dividends 8,600 Average stockholders' equity 1,666,667 Average common stockholders' equity 973,585 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 %

Common Stockholders' Profitability Analysis A company reports the following: Net income $215,000 Preferred dividends 8,600 Average stockholders' equity 1,666,667 Average common stockholders' equity 973,585 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 %

Name: Common Stockholders' Profitability AnalysisA company reports the foll
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Description: Common Stockholders' Profitability AnalysisA company reports the following:Net income$215,000Preferred dividends8,600Average stockholders' equity1,666,667Average common stockholders' equity973,585Determine (a) the return on stockholders' equity and

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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Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 $129,600 1,000,000 1,500,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator 5.40 8.64 56.70 Denominator ◆ Average stockholders' equity X 8 x Did the return improve? The return on common stockholders' equity decreased X X from the previous year to the current year. ROE % %
Five measures of solvency or profitability The balance sheet for Garcon Inc.at the end of the current fiscal year indicated the following: Bonds payable,8% $5,000,000 Preferred $4 stock, $50 par 2,500,000 Common stock,$ 10 par s,000,000 Income before income ta.x was $3,000,000,and income taxes were 51,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000.The common stock was selling for $32 per share at the end of the year.Determine each of the following:(A) times interest earned ratio (B) earnings per share on common stock,(C) price earnings ratio, (D) dividends per share of common stock, and (E) dividend yield.(Round ratios and percentages to one decimal place,except for per-share amounts.)
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $250,000 $225,000 $200,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 7% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 88,510 64,380 48,000 The 20Y7 net income was $25,250, and the 20Y6 net income was $17,500. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill…
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
Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Previous Year Current Year $94,500 1,000,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Did the return improve? The return on common stockholders' equity Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator Denominator $129,600 1,500,000 0 0 5.40 8.64 56.70 ◆ 0 0 from the previous year to the current year. ROE % %
Firm L had net assets at the end of the year of $415,000. The only items affecting stockholders' equity during the year were net income of $76,000 and dividends of $46,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Choose Addend: Choose Numerator: + 1 Average Stockholders' Equity 1 Choose Addend: /Choose Denominator: Return on Equity 11 = Average Stockholders' Equity Average stockholders' Equity Return on Equity Return on Equity Check my work
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A company reports the following: Net income $125,000 Preferred dividends 5,000 Average stockholders' equity 992,063 Average common stockholders' equity 634,921 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 fill in the blank 1% b. Return on Common Stockholders’ Equity fill in the blank 2
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.
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24 %24