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 $ 182,000 Debt to assets ratio 8,000 1,000,000 1,200,000 100,000 200,000 2021 $ 150,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2022 8,000 700,000 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%.) 2022 enter debt to assets ratio in percentages % 2021 2021 enter return on common stoc enter debt to assets ratio in percentages %
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 $ 182,000 Debt to assets ratio 8,000 1,000,000 1,200,000 100,000 200,000 2021 $ 150,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2022 8,000 700,000 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%.) 2022 enter debt to assets ratio in percentages % 2021 2021 enter return on common stoc enter debt to assets ratio in percentages %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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