Question
Return on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report: 2015 2016 Net Income $136,500 $214,500 Preferred
Return on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report:
| 2015 | 2016 | ||||
|---|---|---|---|---|---|
| Net Income | $136,500 | $214,500 | |||
| Preferred stock dividends | 11,700 | 11,700 | |||
| Average common stockholders' equity | 4,080,000 | 5,100,000 | |||
| Dividend per common share | 4.68 | 4.68 | |||
| Earnings per share | 6.46 | 6.97 | |||
| Market price per common share, year-end | 66.30 | 71.40 | |||
Calculate the return on common stockholders' equity for Smith & Sons for 2015 and 2016.
Round answers to one decimal place. (Ex. 0.2345 = 23.5%) 2015 Answer:
2016 Answer:
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Audit Guide Audit Sampling
Authors: AICPA
2nd Edition
195068833X, 978-1950688333
