Find return on common stockholders equity

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Reference no: EM13522181

The following financial information is available for Cheney Corporation.


2010

2009

Average common stockholders' equity

$1,200,000

$900,000

Dividends paid to common stockholders

50,000

30,000

Dividends paid to preferred stockholders

20,000

20,000

Net income

290,000

200,000

Market price of common stock

20

15

The weighted average number of shares of common stock outstanding was 80,000 for 2009 and 100,000 for 2010.

Instructions

Calculate earnings per share and return on common stockholders' equity for 2010 and 2009.

Reference no: EM13522181

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