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.)

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Description: Question-based on, "calculate earnings". I have got the red outline box incorrect with 1.24. Thanks for the help. This financial information is available for Crane Corporation.20202019Average common stockholders' equity$1,780,000$1,900,000Dividends

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 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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Question-based on, "calculate earnings".

I have got the red outline box incorrect with 1.24.

Thanks for the help.

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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