Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

help me solve earnings per share and return on common stockholder's equity The stockholders' equity accounts of Riverbed Corp on January 1, 2025, were as

help me solve earnings per share and return on common stockholder's equity
image text in transcribed
image text in transcribed
The stockholders' equity accounts of Riverbed Corp on January 1, 2025, were as follows. During 2025, the corporation hacizhe following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 15,000 shares of common stock for $90,000. Mar. 20 Purchased 3,000 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0,50 per share cash dividend to common stockholders of record on December 15, payable December 31,2 Dec. 31 Determined that net income for the year was $820,000. Paid the dividend declared on December 1. Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.) (Round answers to 2 decimal places for per unit and percentage, es. 17.50 or 17.50%.) Payout ratio % Earnings per share Return on common stockholders' equity %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting An Introduction To Financial Accounting

Authors: Alan Sangster, Lewis Gordon, Frank Wood

15th Edition

1292365439, 9781292365435

Students also viewed these Accounting questions