1. Selected financial data for Irvington Company appear below: Account Balances Beginning of year End of year...
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1. Selected financial data for Irvington Company appear below:
Account Balances | Beginning of year | End of year |
Preferred stock | $ 125,000 | $ 125,000 |
Common stock | $ 300,000 | $ 400,000 |
Retained earnings | $ 75,000 | $ 185,000 |
Total share holders Equity | $ 500,000 | $ 710,000 |
During the year, the company paid dividends of $10,000 on its preferred stock. The company's net income for the year was $120,000. The company's return on common stockholders' equity for the year is closest to:
a. 17%.
b. 19%.
c. 23%.
d. 25%.
2.
The following account balances have been provided for the end of the most recent year:
Total assets | $ 150,000 |
Total stockholders' equity | $ 120,000 |
Total common stock 5000 shares | $ 50,000 |
Total preferred stock (1,000 shares) | $ 10,000 |
The book value per share of common stock is:
a. $22.
b. $25.
c. $20.
d. $28.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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