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Martinez Corp. decided to issue common stock and used the $374,000 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 $196,940 7,500 1,184,000 1,453,000 169,000 269,000 2024 $148,440 2025 7,500 810,000 1,453,000 169,000 643,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%) 2024

Martinez Corp. decided to issue common stock and used the $374,000 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 $196,940 7,500 1,184,000 1,453,000 169,000 269,000 2024 $148,440 2025 7,500 810,000 1,453,000 169,000 643,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%) 2024

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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Martinez Corp. decided to issue common stock and used the $374,000 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) Return on common stockholders' equity (c1) 2025 Debt to assets ratio $196,940 2025 7,500 1,184,000 1,453,000 169,000 269,000 % 2024 2025 $148,440 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 7,500 810,000 1,453,000 169,000 643,000 Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.) % 2024 % 2024 %
Transcribed Image Text:Martinez Corp. decided to issue common stock and used the $374,000 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) Return on common stockholders' equity (c1) 2025 Debt to assets ratio $196,940 2025 7,500 1,184,000 1,453,000 169,000 269,000 % 2024 2025 $148,440 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 7,500 810,000 1,453,000 169,000 643,000 Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.) % 2024 % 2024 %
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