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Doonan Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Total assets $ 1,489,000 $ 1,440,000
Doonan Corporation has provided the following financial data from its balance sheet and income statement:
Year 2 | Year 1 | |||||
Total assets | $ | 1,489,000 | $ | 1,440,000 | ||
Stockholders' equity: | ||||||
Common stock, $4 par value | $ | 360,000 | $ | 360,000 | ||
Additional paid-in capital | $ | 70,000 | $ | 70,000 | ||
Retained earnings | $ | 570,000 | $ | 550,000 | ||
Total stockholders' equity | $ | 1,000,000 | $ | 980,000 | ||
Interest expense | $ | 15,000 | ||||
Income taxes (35%) | $ | 14,162 | ||||
Net income | $ | 26,300 | ||||
The market price of common stock at the end of Year 2 was $4.79 per share.
The companys return on total assets for Year 2 is closest to:
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