On January 1, 2022, Tamarisk, Inc. purchased 1,500 shares of treasury stock. Other information regarding Tamarisk, Inc. is provided as follows. 2022 2021 Net income $220,000 $195,000 Dividends on preferred stock $ 26,000 $ 26,000 Dividends on common stock $ 27,000 $ 20,000 Weighted-average number of common shares outstanding 8,500 10,000 Common stockholders' equity beginning of year $685,000 $604,000 Common stockholders' equity end of year $770,000 $685,000 (a) Compute return on common stockholders' equity for each year. (Round return on common stockholders' to 1 decimal place, e.g. 10.5.) 2022 2021 Return on common stockholders' equity % %
On January 1, 2022, Tamarisk, Inc. purchased 1,500 shares of treasury stock. Other information regarding Tamarisk, Inc. is provided as follows. 2022 2021 Net income $220,000 $195,000 Dividends on preferred stock $ 26,000 $ 26,000 Dividends on common stock $ 27,000 $ 20,000 Weighted-average number of common shares outstanding 8,500 10,000 Common stockholders' equity beginning of year $685,000 $604,000 Common stockholders' equity end of year $770,000 $685,000 (a) Compute return on common stockholders' equity for each year. (Round return on common stockholders' to 1 decimal place, e.g. 10.5.) 2022 2021 Return on common stockholders' equity % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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