The following data are taken from the financial statements, determine for the current year the (a) return on total assets, (b) re on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on common stock, (e) price-earning ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Current assets Property, plant, and equipment Current Year Preceding Year $745,000 $820,000 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year Net income for year Preferred dividends declared Common dividends declared 230,000 160,000 110,000 155,000 (25,000) (25,000) (70,000) (60,000) Round dollar values to two decimal places and other final answers to one decimal place. a. Return on total assets 4.8 X %

The following data are taken from the financial statements, determine for the current year the (a) return on total assets, (b) re on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on common stock, (e) price-earning ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Current assets Property, plant, and equipment Current Year Preceding Year $745,000 $820,000 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year Net income for year Preferred dividends declared Common dividends declared 230,000 160,000 110,000 155,000 (25,000) (25,000) (70,000) (60,000) Round dollar values to two decimal places and other final answers to one decimal place. a. Return on total assets 4.8 X %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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