Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity.
Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Return on Stockholders' Equity
A company reports the following:
Net income.
$750,000
150,000
5,000,000
3,750,000
Preferred dividends
Average stockholders' equity
Average common stockholders' equity
Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity.
a. The Return on Stockholders' Equity
b. The Return on Common Stockholders' Equity
%
%
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