Common Stockholders' Profitability Analysis A company reports the following: Net income $230,000 Preferred dividends 9,200 Average stockholders' equity 2,017,544 Average common stockholders' equity 1,219,890 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 $230,000 Preferred dividends 9,200 Average stockholders' equity 2,017,544 Average common stockholders' equity 1,219,890 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 ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Common Stockholders' Profitability Analysis
A company reports the following:
Net income | $230,000 |
Preferred dividends | 9,200 |
Average |
2,017,544 |
Average common stockholders' equity | 1,219,890 |
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 | ? |
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