ommon Stockholders' Profitability Analysis A company reports the following: Net income $160,000 Preferred dividends 6,400 Average stockholders' equity 1,379,310 Average common stockholders' equity 825,806 Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place. a.  Return on Stockholders' Equity   b.  Return on Common Stockholders’ Equity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Common Stockholders' Profitability Analysis

A company reports the following:

Net income $160,000
Preferred dividends 6,400
Average stockholders' equity 1,379,310
Average common stockholders' equity 825,806

Determine (a) the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your answers to one decimal place.

a.  Return on Stockholders' Equity  
b.  Return on Common Stockholders’ Equity  
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