Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Previous Year Current Year Net Income $35,000 $48,000 Average stockholders' equity 1,000,000 1,500,000 Dividend per common share 1.90 2.00 Earnings per share 2.85 3.20 Market price per common share, year-end 19.00 21.00 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator Denominator ROE Answer Answer Previous Year Answer Answer Current Year Answer Answer Did the return improve? The return on common stockholders' equity Answer from the previous year to the current year. PreviousSave AnswersNext
Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Previous Year Current Year Net Income $35,000 $48,000 Average stockholders' equity 1,000,000 1,500,000 Dividend per common share 1.90 2.00 Earnings per share 2.85 3.20 Market price per common share, year-end 19.00 21.00 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator Denominator ROE Answer Answer Previous Year Answer Answer Current Year Answer Answer Did the return improve? The return on common stockholders' equity Answer from the previous year to the current year. PreviousSave AnswersNext
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Return on Equity
Evans & Sons, Inc., disclosed the following information in a recent annual report:
| Previous Year | Current Year | |
|---|---|---|
| Net Income | $35,000 | $48,000 |
| Average |
1,000,000 | 1,500,000 |
| Dividend per common share | 1.90 | 2.00 |
| Earnings per share | 2.85 | 3.20 |
| Market price per common share, year-end | 19.00 | 21.00 |
Calculate the return on equity for Evans & Sons for each year. Did the return improve?
| Numerator | Denominator | ROE | |
|---|---|---|---|
| Answer | Answer | ||
| Previous Year | Answer | Answer | |
| Current Year | Answer | Answer |
Did the return improve?
The return on common stockholders' equity Answer from the previous year to the current year.
PreviousSave AnswersNext
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