1. ABC Company had net income of $600,000, paid preferred dividends of $50,000, paid common dividends of $100,000, and had average common stockholders' equity of $3,750,000. What is ABC's rate of return on common stockholders' equity? 2. XYZ Company had total cash dividends of $20,000, net income of $260,000, income tax expense of $55,000, and no preferred stock outstanding. What is XYZ's payout ratio? 3. Pitino Corp has total common stockholders' equity of $1,500,000, 50,000 shares outstanding of preferred stock, and 200,000 shares outstanding of common stock. What is Pitino's book value per share? 4. Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $520,000. How much of the proceeds would be allocated to the common stock? 5. Schieble Corporation offered detachable 5-year warrants to buy one share of common stock (par value $1) at $32 (at a time when a share was selling for approximately $48). The price paid for 3,000, $1,000 bonds with the warrants attached was par, or $300,000. Assuming the fair value of the Schieble bonds was known to be $295,000, but the fair value of the warrants without the bonds cannot be determined, what are the amounts that should be allocated to the warrants and the bonds?

1. ABC Company had net income of $600,000, paid preferred dividends of $50,000, paid common dividends of $100,000, and had average common stockholders' equity of $3,750,000. What is ABC 's rate of return on common stockholders' equity? 2. XYZ Company had total cash dividends of $20,000, net income of $260,000, income ta expense of $55,000, and no preferred stock outstanding. What is XYZ's payout ratio? 3. Pitino Corp has total common stockholders' equity of $1,500,000,50,000 shares outstanding of preferred stock, and 200,000 shares outstanding of common stock. What is Pitino's book value per share? 4. Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $520,000. How much of the proceeds would be allocated to the common stock? 5. Schieble Corporation offered detachable 5-year warrants to buy one share of common stock (par value \$1) at \$32 (at a time when a share was selling for approximately \$48). The price paid for 3,000,$1,000 bonds with the warrants attached was par, or $300,000. Assuming the fair value of the Schieble bonds was known to be $295,000, but the fair value of the warrants without the bonds cannot be determined, what are the amounts that should be allocated to the warrants and the bonds? 1. ABC Company had net income of $600,000, paid preferred dividends of $50,000, paid common dividends of $100,000, and had average common stockholders' equity of $3,750,000. What is ABC's rate of return on common stockholders' equity? 2. XYZ Company had total cash dividends of $20,000, net income of $260,000, income tar expense of $55,000, and no preferred stock outstanding. What is XYZ's payout ratio? 3. Pitino Corp has total common stockholders' equity of $1,500,000,50,000 shares outstanding of preferred stock, and 200,000 shares outstanding of common stock. What is Pitino's book value per share? 4. Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $520,000. How much of the proceeds would be allocated to the common stock? 5. Schieble Corporation offered detachable 5-year warrants to buy one share of common stock (par value \$1) at \$32 (at a time when a share was selling for approximately $48 ). The price paid for 3,000,$1,000 bonds with the warrants attached was par, or $300,000. Assuming the fair value of the Schieble bonds was known to be $295,000, but the fair value of the warrants without the bonds cannot be determined, what are the amounts that should be allocated to the warrants and the bonds