Ask Question
30 June, 01:44

What is the return on common stockholdersâ equity based on the following: Beginning Common Stockholdersâ Equity: $10,317,000 Ending Common Stockholdersâ Equity: $10,662,000 Net Income: $1,429,000 Preferred Stock throughout the year: 6%, $75 par (8,000 shares authorized, issued, and outstanding). a:

+3
Answers (1)
  1. 30 June, 04:59
    0
    13.28%

    Explanation:

    return on stockholders' equity = net income after taxes and preferred stock dividends / average stockholders' equity

    net income = $1,429,000 preferred stocks dividends = 8,000 stocks x $75 x 6% = $36,000 average stockholders' equity = ($10,317,000 + $10,662,000) / 2 = $10,489,500

    return on stockholders' equity = ($1,429,000 - $36,000) / $10,489,500 = 13.28%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the return on common stockholdersâ equity based on the following: Beginning Common Stockholdersâ Equity: $10,317,000 Ending Common ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers