Question
Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2017. The following
Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2017. The following information is available for the company for 2017 and 2016. 2017 2016 Net income $ 182,000 $ 150,000 Dividends declared for preferred stockholders 8,000 8,000 Average common stockholders equity 1,000,000 700,000 Total assets 1,200,000 1,200,000 Current liabilities 100,000 100,000 Total liabilities 200,000 500,000
(a) Compute the return on common stockholders equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2017 2016 Return on common stockholders equity ratio % %
(c1) Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2017 2016 Debt to assets ratio
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