Common Stockholders' Profitability AnalysisA company reports the following:Net income$150,000Preferred dividends6,000Average stockholders' equity1,079,137Average common stockholders' equity679,245Determine (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' Equityfill in the blank 1 %b. Return on Common Stockholders’ Equityfill in the blank 2 % Common Stockholders' Profitability AnalysisA company reports the following:Net income$150,000Preferred dividends6,000Average stockholders' equity1,079,137Average common stockholders' equity679,245Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to onedecimal place.a. Return on Stockholders' Equity13| х %b. Return on Common Stockholders' Equity21X %FeedbackV Check My Worka. Divide net income by average stockholders' equity.b. Divide net income minus preferred dividends by average common stockholders' equity.

Name: Common Stockholders' Profitability AnalysisA company reports the follo
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Description: Common Stockholders' Profitability AnalysisA company reports the following:Net income$150,000Preferred dividends6,000Average stockholders' equity1,079,137Average common stockholders' equity679,245Determine (a) the return on stockholders’ equity and (

Answer a) Calculation of Return on Stockholders’ Equity Return on Stockholders’ Equity = Net Income/…

Answered: Common Stockholders' Profitability…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Common Stockholders' Profitability Analysis

A company reports the following:

Net income	$150,000
Preferred dividends	6,000
Average stockholders' equity	1,079,137
Average common stockholders' equity	679,245

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 %

Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$150,000
Preferred dividends
6,000
Average stockholders' equity
1,079,137
Average common stockholders' equity
679,245
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
13| х %
b. Return on Common Stockholders' Equity
21
X %
Feedback
V Check My Work
a. Divide net income by average stockholders' equity.
b. Divide net income minus preferred dividends by average common stockholders' equity.

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