Quantitative Reasoning Problem 2

ACC 122

Assignment is to be completed as a Word Document, PDF, or on notebook paper and submitted through Moodle

The table below contains letters a, b, c, d.

	2018	2017
Average common stockholder equity	$1,800,000	$1,900,000
Dividends paid to common shareholders	90,000	70,000
Dividends paid to preferred shareholders	20,000	20,000
Net Income	290,000	248,000
Market Price of common stock	$20	$25
Weighted average number of shares common stock outstanding	150,000	180,000
Earnings per share	(a)	(b)
Return on common stockholders equity	(c)	(d)

Tell what these formulas are used for : Earnings per share; Return on common stockholder equity

Show all your computations or calculations for each of the letters (a), (b), (c ) (d)

Provide a sentence of explanation for each answer telling why you did what you did