Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 1,000,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator $129,600 1,500,000 5.40 8.64 56.70 Did the return improve? The return on common stockholders' equity decreased Denominator ◆ Average stockholders' equity X 8x + X X from the previous year to the current year. ROE % %
Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 1,000,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator $129,600 1,500,000 5.40 8.64 56.70 Did the return improve? The return on common stockholders' equity decreased Denominator ◆ Average stockholders' equity X 8x + X X from the previous year to the current year. ROE % %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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