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 ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 ?
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