Common Stockholders' Profitability Analysis A company reports the following: Net income $150,000 6,000 1,127,820 738,462 Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity X% b. Return on Common Stockholders' Equity X% Preferred dividends Average stockholders' equity Average common stockholders' equity Feedback Check My Work a. Divide net income by average stockholders equity b. Divide net income minus preferred dividends by average common stockholders' equity

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$150,000
Preferred dividends
6,000
Average stockholders' equity
1,127,820
Average common stockholders' equity
738,462
Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimal place.
a. Return on Stockholders' Equity
b. Return on Common Stockholders' Equity
Feedback
X%
X%
Check My Work
a. Divide net income by average stockholders equity
b. Divide net income minus preferred dividends by average common stockholders' equity
Transcribed Image Text:Common Stockholders' Profitability Analysis A company reports the following: Net income $150,000 Preferred dividends 6,000 Average stockholders' equity 1,127,820 Average common stockholders' equity 738,462 Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity b. Return on Common Stockholders' Equity Feedback X% X% Check My Work a. Divide net income by average stockholders equity b. Divide net income minus preferred dividends by average common stockholders' equity
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