Hello, I'm currently trying to find the answer to this problem in accounting
Solve for : determine the rate earned on total assets, the rate earned on stockholder's equity, and the rate earned on common stockholder's equity for the years 2006 and 2007. Rounded answers if you please.(2 digits after decimal).
Dec 31, 2007 Dec 31, 2006 Dec 31, 2005
Total assets $1,450,000 $1,300,000 $1,100,000
Notes Payable (8% interest) 187,500 187,500 187,500
Common stock 450,000 450,000 450,000
Preferred $10 stock, $100 par, cumulative
Nparticipating (no change during the year)200,000 200,000 200,000
Retained earnings 495,000 365,000 205,000
The net income was $105,000 for 2007 and the net income was $180,000 for 2006.
No dividends on common stock were declared between 2005 and 2007