Cornerstone Exercise 10-37 (Algorithmic) Stockholder Profitability Ratios

The following information pertains to Montague Corporation:

Net income	$47,000
Average common equity	$1,500,000
Preferred dividends	$7,500
Average common shares outstanding	100,000

Required:

Calculate the return on common equity and the earnings per share. Round your answers to two decimal places.

Return on common equity		%
Earnings per share	$	per share

Earnings Per Share at $0.395 is showing to be incorrect??

Cornerstone Exercise 10-37 (Algorithmic) Stockholder Profitability Ratios The following information pertains to Montague Corporation: Net income Average common equity Preferred dividends Average common shares outstanding Required: Calculate the return on common equity and the earnings per share. Round your answers to two decimal places. Return on common equity Earnings per share $47,000 $1,500,000 $7,500 100,000 2.63 % 0.395 X per share Feedback Check My Work Return on common equity measures the earnings after preferred dividends, in proportion to common equity. Earnings per share measures the earnings after preferred dividends, for each share of common stock