Common Stockholders' Profitability Analysis A company reports the following: Net income $125,000 Preferred dividends 5,000 Average stockholders' equity 976,563 Average common stockholders' equity 588,235

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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DZL. 7-2 Project: Company Accour X
D21. 7-1 Problem Set: Module Sev X
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Common Stockholders' Profitability Analysis
A company reports the following:
Net income
$125,000
Preferred dividends
000
976,563
Average stockholders' equity
Average common stockholders' equity
588,235
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
0.2 X %
b. Return on Common Stockholders' Equity
%
V Check My VWork
a. Divide net income by average stockholders' equity.
b. Divide net income minus preferred dividends by average common stockholders equity
Check My Work
( Previous
Next
3:00 PM
4/11/2022
dy
114
Transcribed Image Text:DZL. 7-2 Project: Company Accour X D21. 7-1 Problem Set: Module Sev X CengageNOWv2 | Online tea x Cengage Learning + x ngagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false 电 手 eBook Show Me How Common Stockholders' Profitability Analysis A company reports the following: Net income $125,000 Preferred dividends 000 976,563 Average stockholders' equity Average common stockholders' equity 588,235 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 0.2 X % b. Return on Common Stockholders' Equity % V Check My VWork a. Divide net income by average stockholders' equity. b. Divide net income minus preferred dividends by average common stockholders equity Check My Work ( Previous Next 3:00 PM 4/11/2022 dy 114
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