The average stockholder's equity for horn co. last year was P3,000,000. Included in this figure was P500,000 par value of 8% preferred stock. If the return on common stockholder's equity was 12.5% for the year, the net income was P___?

The average stockholder's equity for horn co. last year was P3,000,000. Included in this figure was P500,000 par value of 8% preferred stock. If the return on common stockholder's equity was 12.5% for the year, the net income was P___?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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