Question: From the following data determine for the current year the a rate earned on total assets, b. Rate earned on stockholders' equity, c. Rate earned

From the following data determine for the current year the a rate earned on total assets, b. Rate earned on stockholders' equity, c. Rate earned on common stockholders' equity, d. Earnings per share on common stock, e. Price-earnings ratio on common stock and f dividend yield on common stock. Assume that the current market price per share of common stock is $25. Present key figures used in your computations. -----------------------------------

Current Preceding

current year preceding year current assets --------------------------- 745,000 ------------ 820,000

Property, plant, and equipment----------- 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------------------------ 240,000---------- 160,000

Net inome for year----------------------- 95,000---------- 155,000

Preferred dividends declared----------- (25,000)---------- (25,000)

Common dividends declared----------- (70,000)--------- (60,000)

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