Question
a. 18,000 shares of common stock were sold at par on july 1, 2026. net income for 2026 was $55,000 and there were no dividends.
a. 18,000 shares of common stock were sold at par on july 1, 2026. net income for 2026 was $55,000 and there were no dividends. calculate the return on common stockholders equity for 2025, 2026 and % of change.
b. All of the notes payable were paid in 2026. All other liabilities remained at their December 31, 2025 levels. Total assetts on December 31, 2026 were $906,000. Calculate the debt to assetts ratios for 2025, 2026 and the % of change.
c. The market price of common stock was $9 and $13 on December31, 2025 and 2026, respectively. Net income for 2026 was $55,000 (use a simple average calculation for EPS). Calculate the price - earnings ratio for 2025, 2026 and % of change.
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