Arthur Corporation has the following selected financial data:

There were no preferred dividends in arrears.
(a). Calculate the following ratios for 2012:
(1) Rate of return on common shareholders€™ equity,
(2) Payout ratio,
(3) Price earnings ratio,
(4) Book value,
(5) Rate of return on total assets.
(b). Is Arthur Corporation trading on the equity?

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2012 2011 Net income Total assets Preferred shares, 4%, cumulative Common shares Retained earnings Accumulated other comprehensive income Total shareholders' equity Cash dividends paid in the year Market price of common shares Weighted average number of common shares $ 720,000 5,136,000 600,000 350,000 2,786,000 145,000 3,881,000 124,000 $97.46 80,000 $680,000 4,525,000 600,000 350,000 2,190,000 130,000 3,270,000 170,000 $64.33 80,000