Refer to the financial statements of Mixon Company in Exercises 13 and 15. The following additional information

Question:

Refer to the financial statements of Mixon Company in Exercises 1–3 and 1–5. The following additional information about the company is known:

Common stock market price, December 31, 2006 . . . . . . $15.00

Common stock market price, December 31, 2005 . . . . . . 14.00

Annual cash dividends per share in 2006 . . . . . . . . . . . . 0.60

Annual cash dividends per share in 2005 . . . . . . . . . . . . 0.30

To help evaluate the profitability of the company, compute the following for 2006 and 2005:

(a) Return on common stockholders’ equity,

(b) Price-earnings ratio on December 31, and

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