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NJ Simpson Inc. reported the following equity accounts in its 2019 balance sheet. Stock prices for the past three year-ends of 2019, 2018, and
NJ Simpson Inc. reported the following equity accounts in its 2019 balance sheet. Stock prices for the past three year-ends of 2019, 2018, and 2017 are: $244.80, $196.96, and $136.34, respectively. 2019 2018 2017 Shareholders' Equity ($ millions, expect par and shares) Common stock-par value $1 per share (authorized 70,000,000 shares: issued 40.000.000 shares) Additional paid-in capital Accumulated other comprehensive income Retained earnings Stockholders equity before treasury stock Less: common stock held in treasury, at cost (15.360.000. 10.336.000, and 980,000 shares, respectively) Total shareholders' equity Equity attributable to noncontrolling interest Equity attributable to company shareholders The income statement for NJ Simpson Inc. reports the following. $40 $40 $40 1,240 1,240 1,240 108 (96) (220) 1,209 1,419 1,340 2,807 2,524 2.269 Traditional definition of equity. . With adding back treasury stock to equity. Using market value of equity instead of book value. Round answers to one decimal place (ex: 0.2345 = 23.5%) (2,776) (1,844) 31 (6) $25 $674 $2.149 (114) 680 2,155 (6) (6) $ millions 2019 2018 2017 Earnings attributable to company shareholders $405 $301 $217 Consolidated net income i 409 303 218 a. Compute return on equity for 2019 and 2018, under the following assumptions.
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To compute the return on equity ROE for 2019 and 2018 using different assumptions well use the following formulas 1 Traditional definition of equity R...Get Instant Access to Expert-Tailored Solutions
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