Question
Common Stockholders' Profitability Analysis A company reports the following: Net income $285,000 Preferred dividends 11,400 Average stockholders' equity 2,567,568 Average common stockholders' equity 1,266,667 Determine
Common Stockholders' Profitability Analysis
A company reports the following:
| Net income | $285,000 |
| Preferred dividends | 11,400 |
| Average stockholders' equity | 2,567,568 |
| Average common stockholders' equity | 1,266,667 |
Determine (a) the the return on stockholders equity and (b) the return on common stockholders equity. If required, round your percentages to one decimal place.
| a. The rate earned on stockholders' equity | % |
| b. The rate earned on common stockholders' equity |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
