Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, eginning of year 230,000 160,000 det income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) etermine for the current year the (a) return on total assets, (b) return on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on ommon stock, (e) price-earnings ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Round dollar values to two ecimal places and other final answers to one decimal place. a. Return on total assets 7.1 V %

Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, eginning of year 230,000 160,000 det income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) etermine for the current year the (a) return on total assets, (b) return on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on ommon stock, (e) price-earnings ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Round dollar values to two ecimal places and other final answers to one decimal place. a. Return on total assets 7.1 V %

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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Question

100%

Current assets
$745,000
$820,000
Property, plant, and equipment
1,510,000
1,400,000
Current liabilities
(non-interest-bearing)
160,000
140,000
Long-term liabilities, 12%
400,000
400,000
Preferred 10% stock
250,000
250,000
Common stock, $25 par
1,200,000
1,200,000
Retained earnings,
beginning of year
230,000
160,000
Net income for year
110,000
155,000
Preferred dividends declared
(25,000)
(25,000)
Common dividends declared
(70,000)
(60,000)
Determine for the current year the (a) return on total assets, (b) return on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on
common stock, (e) price-earnings ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Round dollar values to two
decimal places and other final answers to one decimal place.
a. Return on total assets
7.1
b. Return on stockholders' equity
6.5
X %
Return on common stockholders' equity
X %
d. Earnings per share on common stock
1.77
e. Price-earnings ratio on common stock
14.1
f. Dividend yield
5.8

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