Compute return on common stockholder equity for each year

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Reference no: EM132539960

Net income                                                $110,000                     $110,000

Dividends on preferred stock                         $10,000                     $10,000

Dividends on common stock                         $1,600                         $2,000

Common stockholders' equity, beg. of year      $400,000                 $500,000

Common stockholders' equity, end of year         $400,000                  $500,000

  • Adjusted for purchase of treasury stock.

Question 1: Compute the return on common stockholders' equity for each year.

Reference no: EM132539960

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