posted by .

please let me know if I'm right

common stock $600
additional paid-in capital $250
retained earnings $370
net income for year $240
I need return on common stockholder's equity=net income/stock equity=240/600=0.4

  • accounting -

    Do you mean return on common sh equity rate?

    (Net income – Preferred dividends)
    ÷ Average common stockholders’ equity

    That is the formula. Since you do not have any preferred dividends then you can leave it out.

  • accounting -

    thanks :)

  • accounting -

    took my test. answer 0.4 is not right :( I don't understand then....

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance 34

    34. The retained earnings of the firm belong to A. creditors B. preferred stockholders C. common stockholders D. bondholders I chose (C) common stockholders, because the equity section is divided into two accounts 1. common stock and …
  2. Accounting

    Help with Crosby Corporation? Can you please help me. I am completly stuck. Prepare a statement of cash flows for the Crosby Corporation. Follow the general procedures indicated in Table 2–10 on page 38 . Statement of cash flows
  3. accounting

    I just have a small question about how to calculate the shares of common stocks, no par having the information below, thanks. The following stockholders' equity accounts arranged alphabetically are in the ledger of Tyner Corporation …
  4. accounting

    Selected year- end financial statements of Cadet Corporation follow. ( All sales were on credit; selected balance sheet amounts at December 31, 2008 (prior year – you will need this to calculate certain averages), were inventory, …
  5. financial accounting

    (5) Chapter 13 Problem The Torre Company has the following balances in stockholders equity on December 31st. Common Stock - $5.00 par, 60,000 issued $300,000 Additional paid in capital - common 600,000 Preferred stock - $100 par, 5,000 …
  6. Investments

    An analyst gathers the following information about Meyer, Inc.: • Meyer has 1,300 shares of 8% cumulative preferred stock outstanding, with a par value of $240, and liquidation value of $250. • Meyer has 22,400 shares of common …
  7. Accounting

    Entries for Stock Dividends Organic Life Co. is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet of Organic Life Co.: Common stock (250,000 shares authorized), $125 par, $17,500,000; …
  8. Accounting

    These questions are based on the following information and should be viewed as independent situations. Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2009, when Cocker had the following stockholders' equity …
  9. accounts

    Ex 11.5 The year-end balance sheet of Jackson Products, INC., includes the following stockholders' equity section (with certain details ommited): Stockholders' equity: Capital stock: 7% cumulative preferred stock, $100 par value----$15,000,000 …
  10. accounting

    Total Assets Total Liabilities Beginning of the year $550,000 $215,000 End of the year 844,000 320,000 On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of …

More Similar Questions