Ivanhoe Company has $1,200,000 in assets and $1,200,000 in stockholders equity, with 42,200 shares outstanding the entire year. It has a return on assets of 10%. During 2016, I had net income of $120,000. On January 1, 2017, it issued $386,000 in debt at 6% and immediately re-purchased 21,100 shares for $386,000. Management expected that, had it not issued the debt, it would have had net income of $120,000 in 2017.

Exercise 11-15 Ivanhoe Company has $1,200,000 in assets and $1,200,000 in stockholders' equity, with 42,200 shares outstanding Issued $386,000 in debt at 6% and immediately repurchased 21,100 shares for $386,000. Management expected tha Your answer is partially correct. Try again. Determine the company's net income and earnings per share for 2016 and 2017. (Ignore taxes in your computations 2016 2017 Net Income 120000 Earnings per share x Your answer is incorrect. Try again. Compute the company's return on common stockholders' equity for 2016 and 2017. (Round answers to o decimal 2016 2017 Return on common stockholders' equity Your answer is partially correct. Try again. Compute the company's debt to assets ratio for 2016 and 2017. (Round answers 2016 2017 Debt to assets ratio Click if you would like to Show Work for this question: Open Show Work