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During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million
During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million to 105 million. The following information was drawn from the company's financial statements (in millions). Information for the Year after Purchase of Treasury Stock Information for the Year before Purchase of Treasury Stock Net income $201.1 $ 130.9 Total assets 2,083.5 1,845.4 Average total assets 2.024.4 1,897.3 Total common stockholders' equity 1,037.3 1,075.6 Average common stockholders' equity 1,085.5 1,133.7 Total liabilities 1,053.8 777.4 Average total liabilities 946.5 771.2 Interest expense 37.7 27.3 Income taxes 121.2 91.8 Cash provided by operations 312.7 241.3 Cash dividends paid on common stock 34.3 38.5 Preferred stock dividends 0.0 0.0 Average number of common shares outstanding 117.2 127.4 Compute earnings per share, return on common stockholders' equity, and return on assets for both years. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal place, e.g. 15.2%.) Year ended After Purchase of Treasury Stock Before Purchase of Treasury Stock Earnings per share $ Return on common stockholders' equity % % Return on assets % %
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