Determine the company net income and earnings per share

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Question - Manning Company has $1,000,000 in assets and $1,000,000 in stockholders' equity, with 50,000 shares outstanding the entire year. It has a return on assets ratio of 9%. In the past year it had net income of $75,000. On January 1, 2017, it issued $300,000 in debt at 5% and immediately repurchased 25,000 shares for $300,000. Management expected that, had it not issued the debt, it would have again had net income of $75,000.

Determine the Company's net income and earnings per share for 2016 and 2017.

Compute the Company's return on common stockholders' equity for 2016 and 2017.

Compute the company's debt to assets ratio for 2016 and 2017.

Reference no: EM132091106

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