Stockholder Profitability Ratios The following information pertains to Montague Corporation: Net income $60,000 Average common equity $1,500,000 Preferred dividends $7,500 Average common shares outstanding 100,000 Required: Calculate the return on common equity and the earnings per share. Round your answers to two decimal places. Return on common equity fill in the blank 1 % Earnings per share $fill in the blank 2 per share
Stockholder Profitability Ratios The following information pertains to Montague Corporation: Net income $60,000 Average common equity $1,500,000 Preferred dividends $7,500 Average common shares outstanding 100,000 Required: Calculate the return on common equity and the earnings per share. Round your answers to two decimal places. Return on common equity fill in the blank 1 % Earnings per share $fill in the blank 2 per share
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 37CE: Stockholder Profitability Ratios The following information pertains to Montague Corporation...
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Stockholder Profitability Ratios
The following information pertains to Montague Corporation:
| Net income | $60,000 |
| Average common equity | $1,500,000 |
| Preferred dividends | $7,500 |
| Average common shares outstanding | 100,000 |
Required:
Calculate the return on common equity and the earnings per share. Round your answers to two decimal places.
| Return on common equity | fill in the blank 1 | % |
| Earnings per share | $fill in the blank 2 | per share |
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