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Oriole Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 43,600 shares outstanding the entire year. It has a return on assets of
Oriole Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 43,600 shares outstanding the entire year. It has a return on assets of 10%. During 2016, it had net income of $111,000. On January 1, 2017, it issued $409,000 in debt at 4% and immediately repurchased 21,800 shares for $409,000. Management expected that, had it not issued the debt, it would have had net income of $111,000 in 2017. Determine the company's net income and earnings per share for 2016 and 2017. (Ignore taxes in your computations.) (Round earnings per share to 2 decimal places, eg. $2.66.) 2016 2017 Net income Earnings per share Compute the company's return on common stockholders' equity for 2016 and 2017. (Round answers to O decimal places, eg. 1596) 2017 2016 Return on common stockholders' equity Compute the company's debt to assets ratio for 2016 and 2017. (Round answers to 0 decimal places, eg. 15%) 2016 2017 Debt to assets ratio
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