Stockholders' Profitability Analysis A company reports the following: Net income $275,000 Preferred dividends 11,000 Average stockholders' equity 1,978,417 Average common stockholders' equity 1,281,553 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 fill in the blank 1 % b. Return on Common Stockholders’ Equity fill in the blank 2
Stockholders' Profitability Analysis A company reports the following: Net income $275,000 Preferred dividends 11,000 Average stockholders' equity 1,978,417 Average common stockholders' equity 1,281,553 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 fill in the blank 1 % b. Return on Common Stockholders’ Equity fill in the blank 2
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 | $275,000 |
| Preferred dividends | 11,000 |
| Average |
1,978,417 |
| Average common stockholders' equity | 1,281,553 |
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 | fill in the blank 1 % |
| b. Return on Common Stockholders’ Equity | fill in the blank 2 % |
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