Question: Return on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report: 2015 2016 Net Income $35,000 $55,000 3,000
Return on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report: 2015 2016 Net Income $35,000 $55,000 3,000 Average common stockholders' equity 1,200,000 1,500,000 1.50 2.05 21.00 Preferred stock dividends 3,000 Dividend per common share Earnings per share Market price per common share, year-end 1.20 1.90 19.50 calculate the return on common stockholders equity for Smith & Sons for 2015 and 2016 Round answers to one decimal place. (Ex. 0.2345 23.5%) 201510 % 2016 0 Did the return improve from 2015 to 2016? The return on common stockholders' equity # from 2015 to 2016
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