Return on EquityEvans & Sons, Inc., disclosed the following information in a recent annual report:Net IncomeAverage stockholders' equityDividend per common shareEarnings per shareMarket price per common share, year-endNet incomePrevious Year Current Year$94,500$129,6001,000,0001,500,000Previous Year $Current Year $5.137.7051.30Calculate the return on equity for Evans & Sons for each year. Did the return improve?Numerator5.408.6456.70Denominator◆ Average stockholders' equityX8 xDid the return improve?The return on common stockholders' equity decreasedXXfrom the previous year to the current year.ROE%%

Lets understand the basics.RETURN ON COMMON SHAREHOLDERS EQUITYReturn on Shareholders Equity is the…

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 % %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer in excel format and explain formulas used.
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