Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2022. The following information is available for the company for 2022 and 2021. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities 2022 $ 182,000 8,000 2021 100,000 200,000 $ 150,000 8,000 1,000,000 1,200,000 1,200,000 700,000 100,000 500,000
Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2022. The following information is available for the company for 2022 and 2021. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities 2022 $ 182,000 8,000 2021 100,000 200,000 $ 150,000 8,000 1,000,000 1,200,000 1,200,000 700,000 100,000 500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on
January 1, 2022. The following information is available for the company for 2022 and 2021.
Net income
Dividends declared for preferred stockholders
Average common stockholders' equity
Total assets
Current liabilities
Total liabilities
(a)
Return on
common
stockholders'
equity ratio
(c1)
2022
2022
Debt to assets
ratio
$ 182,000
8,000
1,000,000.
1,200,000
100,000
200,000
2021
$ 150,000
8,000
700,000
Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
1,200,000
100,000
500,000
enter return on common stockholders equity in percentages %
Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.)
2021
2022
2021
enter debt to assets ratio in percentages %
enter return on common stockho
enter debt to assets ratio in percentages %
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