eBook Show Me How Common Stockholders' Profitability Analysis A company reports the following: Net income Preferred...

Transcribed Image Text:

eBook Show Me How Common Stockholders' Profitability Analysis A company reports the following: Net income Preferred dividends Average stockholders' equity $270,000 10,800 2,547,170 1,393,548 Average common stockholders' equity 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 0.1 X % 0.2 X % Check My Work a. Divide net income by average stockholders' equity b. Divide net income minus preferred dividends by average common stockholders' equity. eBook Show Me How Common Stockholders' Profitability Analysis A company reports the following: Net income Preferred dividends Average stockholders' equity $270,000 10,800 2,547,170 1,393,548 Average common stockholders' equity 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 0.1 X % 0.2 X % Check My Work a. Divide net income by average stockholders' equity b. Divide net income minus preferred dividends by average common stockholders' equity.