Novak Corp. decided to issue common stock and used the $558,000 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 $197,500 8.800 1,258,000 Debt to assets ratio 1,593,000 2025 197,000 335,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, eg. 12.5%) 2024 $155,800 2025 8.800 700,000 1.593,000 197,000 893,000 Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, g 12.5%) 2024 2024
Novak Corp. decided to issue common stock and used the $558,000 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 $197,500 8.800 1,258,000 Debt to assets ratio 1,593,000 2025 197,000 335,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, eg. 12.5%) 2024 $155,800 2025 8.800 700,000 1.593,000 197,000 893,000 Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, g 12.5%) 2024 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Novak Corp. decided to issue common stock and used the $558,000 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
$197,500
8.800
1,258,000
Debt to assets ratio
1,593,000
2025
197,000
335,000
Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, eg. 12.5%)
2024
$155,800
2025
8.800
700,000
1.593,000
197,000
893,000
Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, eg 12.5%)
2024
2024
%
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