A company reports the following: Net income .................................................... $500,000 Preferred dividends .......................................... 25,000 Average stockholders equity .....................
Question:
A company reports the following:
Net income .................................................... $500,000
Preferred dividends .......................................... 25,000
Average stockholders’ equity ..................... 3,125,000
Average common stockholders’ equity ..... 1,900,000
Determine
(a) The return on stockholders’ equity and
(b) The return on common stockholders’ equity. Round percentages to one decimal place.
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Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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