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Markus Company's common stock sold for $4.00 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $0.88 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income $ $ This Year 900,000 522,000 378,000 228,000 12,000 136,700 $ $ $ SSSSSSSSSS $ $ Ending Balance 45,500 $ 82,000 $ 67,600 $ 195,100 $ 648,000 $ 72,500 $ 188,000 $ Beginning Balance 39,200 61,200 82,000 182,400 689,200 % 73,500 169,200 47,000 $ 47,000 98,000 $ 98,000 460,000 $ 520,000 648,000 $ 689,200 Required: What is the return on common stockholders' equity? (Round your answer to 2 decimal places.) Return on common stockholders' equity

Markus Company's common stock sold for $4.00 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $0.88 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income $ $ This Year 900,000 522,000 378,000 228,000 12,000 136,700 $ $ $ SSSSSSSSSS $ $ Ending Balance 45,500 $ 82,000 $ 67,600 $ 195,100 $ 648,000 $ 72,500 $ 188,000 $ Beginning Balance 39,200 61,200 82,000 182,400 689,200 % 73,500 169,200 47,000 $ 47,000 98,000 $ 98,000 460,000 $ 520,000 648,000 $ 689,200 Required: What is the return on common stockholders' equity? (Round your answer to 2 decimal places.) Return on common stockholders' equity

FINANCIAL ACCOUNTING
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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Markus Company's common stock sold for $4.00 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $0.88 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities. Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 900,000 522,000 378,000 228,000 12,000 136,700 $ $ $ $ $ SSSSSSSSSSS $ $ Ending Balance 45,500 $ 82,000 $ 67,600 $ 195,100 $ 648,000 $ 72,500 $ Beginning Balance 39,200 61,200 82,000 % 182,400 689,200 73,500 188,000 $ 47,000 $ 98,000 $ 460,000 $ 520,000 648,000 $ 689,200 169,200 47,000 98,000 Required: What is the return on common stockholders' equity? (Round your answer to 2 decimal places.) Return on common stockholders' equity
Transcribed Image Text:Markus Company's common stock sold for $4.00 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $0.88 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities. Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 900,000 522,000 378,000 228,000 12,000 136,700 $ $ $ $ $ SSSSSSSSSSS $ $ Ending Balance 45,500 $ 82,000 $ 67,600 $ 195,100 $ 648,000 $ 72,500 $ Beginning Balance 39,200 61,200 82,000 % 182,400 689,200 73,500 188,000 $ 47,000 $ 98,000 $ 460,000 $ 520,000 648,000 $ 689,200 169,200 47,000 98,000 Required: What is the return on common stockholders' equity? (Round your answer to 2 decimal places.) Return on common stockholders' equity
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