This financial information is available for Crane Corporation. 2020 2019 Average common stockholders' equity $1,780,000 $1,900,000 Dividends paid to common stockholders 90,500 68,000 Dividends paid to preferred stockholders 19,500 19,500 Net income 294,500 240,500 Market price of common stock 22 23 The weighted-average number of shares of common stock outstanding was 175,500 for 2019 and 146,500 for 2020. Calculate earnings per share and return on common stockholders' equity for 2020 and 2019. (Round answers to 2 decimal places, e.g. 10.50% or $10.50.)
This financial information is available for Crane Corporation. 2020 2019 Average common stockholders' equity $1,780,000 $1,900,000 Dividends paid to common stockholders 90,500 68,000 Dividends paid to preferred stockholders 19,500 19,500 Net income 294,500 240,500 Market price of common stock 22 23 The weighted-average number of shares of common stock outstanding was 175,500 for 2019 and 146,500 for 2020. Calculate earnings per share and return on common stockholders' equity for 2020 and 2019. (Round answers to 2 decimal places, e.g. 10.50% or $10.50.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question-based on, "calculate earnings".
I have got the red outline box incorrect with 1.24.
Thanks for the help.
Transcribed Image Text:This financial information is available for Crane Corporation.
2020
2019
Average common stockholders' equity
$1,780,000
$1,900,000
Dividends paid to common stockholders
90,500
68,000
Dividends paid to preferred stockholders
19,500
19,500
Net income
294,500
240,500
Market price of common stock
22
23
The weighted-average number of shares of common stock outstanding was 175,500 for 2019 and 146,500 for 2020.
Calculate earnings per share and return on common stockholders' equity for 2020 and 2019. (Round answers to 2 decimal places, e.g.
10.50% or $10.50.)
2020
2019
Earnings per share
2$
1.88
2$
1.24
Return on common stockholders' equity
15.45
11.63
Expert Solution
Step 1
Earnings per share refer to the amount earned by each stockholder. This can be identified by dividing the total earning available for equity shareholders by the total number of outstanding shares.
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