Arthur Corporation has the following selected financial data:

There were no preferred dividends in arrears.
(a) Calculate the following ratios for 2014:
(1) Rate of return on common shareholders' equity,
(2) Payout ratio,
(3) Price earnings ratio,
(4) Book value, and
(5) Rate of return on total assets.
(b) Is Arthur Corporation trading on the equity?

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2014 2013 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