Question

Company Assume that a balance sheet The following information pertains to Band amounts represent average balance figures Total assets Stockholders' equity common Total stockholders' equity Sales revenue Net income Number of shares of common stock Common dividends Preferred dividends $300,000 150,000 200,000 100.000 25.000 6.000 5.000 7,000 22. What is the return on common stockholders' equity ratio for Benedict? a 16.7% b. 12.0% c. 13.3% d. 9.0% 23. The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures Total asset $400.000 Stockholders' equity-common 200,000 Total stockholders' equity 280,000 Sales 120,000 Net income 30,000 Number of shares of common stock 8,000 Common dividends 6,000 Preferred dividends 4,000 What is Marsh's return on common stockholders' equity? a. 15% b. 13.0% c. 10.0% d. 9.3%

Answer 1

22)

Common stockholder's equity ratio for benedict = (Net Income/ Common stockholder's equity) = 25,000/150,000 = 16.7%

23)

Marsh;s return on common stockholder's equity = 30,000/200,000 = 15%