The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7,
Question:
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 2OYS:
The 20Y7 net income was $23,250, and the 20Y6 net income was $12,915. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round to one decimal place.
b. The profitability ratios indicate that the company's profitability has _______________Since the return on asset _______________ is return on stockholders' equity in both years, there must _____________ the leverage from the use of debt.
Expert Answer:
a ANSWER Return on total assets Net income Average total assets 20Y6 12915 110000 120000 2 01... View the full answer
