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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Common Stockholders' Profitability Analysis
A company reports the following:
Net income | $160,000 |
Preferred dividends | 6,400 |
Average |
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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