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The following selected data were taken from the financial statements of The O'Malley Group Inc. for December 31, 20Y5, 20Y4, and 20Y3: December 31 20Y5
The following selected data were taken from the financial statements of The O'Malley Group Inc. for December 31, 20Y5, 20Y4, and 20Y3:
December 31 | |||||||
20Y5 | 20Y4 | 20Y3 | |||||
Total assets | $2,900,000 | $2,400,000 | $2,000,000 | ||||
Notes payable (5% interest) | 800,000 | 800,000 | 800,000 | ||||
Common stock | 250,000 | 250,000 | 250,000 | ||||
Preferred $4 stock, $50 par (no change during year) | 400,000 | 400,000 | 400,000 | ||||
Retained earnings | 1,450,000 | 950,000 | 550,000 | ||||
Net income | 530,000 | 430,000 | 330,000 |
No dividends on common stock were declared between 20Y3 and 20Y5.
a. Determine the return on total assets, the return on stockholders equity, and the return on common stockholders equity for the years 20Y4 and 20Y5. Round to one decimal place.
20Y5 | 20Y4 | |
Rate earned on total assets | % | % |
Rate earned on stockholders' equity | % | % |
Rate earned on common stockholders' equity | % | % |
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