Question
eturn on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report: 2015 2016 Net Income $28,000 $44,000 Preferred
eturn on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report: 2015 2016 Net Income $28,000 $44,000 Preferred stock dividends 2,400 2,400 Average common stockholders' equity 1,440,000 1,800,000 Dividend per common share 0.96 0.96 Earnings per share 2.28 2.46 Market price per common share, year-end 23.40 25.20 Calculate the return on common stockholders' equity for Smith & Sons for 2015 and 2016. Round answers to one decimal place. (Ex. 0.2345 = 23.5%) 2015 Answer 0 % 2016 Answer 0 % Did the return improve from 2015 to 2016? The return on common stockholders' equity Answer from 2015 to 2016.
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