Flounder Corp. decided to issue common stock and used the $246,000 proceeds to redeem all of its outstanding bonds on January 1, 2025. The following information is available for the company for 2025 and 2024. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities (a) 2025 Return on common stockholders' equity $180,885 9,500 333,000 2024 9,500 1,135,000 889,000 1,468,000 1,468,000 144,000 144,000 579,000 $160,630 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2025 2024 (c1) Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
Flounder Corp. decided to issue common stock and used the $246,000 proceeds to redeem all of its outstanding bonds on January 1, 2025. The following information is available for the company for 2025 and 2024. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities (a) 2025 Return on common stockholders' equity $180,885 9,500 333,000 2024 9,500 1,135,000 889,000 1,468,000 1,468,000 144,000 144,000 579,000 $160,630 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2025 2024 (c1) Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 28E
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