Rate earned on total assets, stockholders' equity, common stockholders'
From the following data determine for the current year the a rate earned on total assets, b. rate earned on stockholders' equity, c. rate earned on common stockholders' equity, d. earnings per share on common stock, e. price-earnings ratio on common stock and f dividend yield on common stock. Assume that the current market price per share of common stock is $27. Present key figures used in your computations.
----------------------------------- current year preceding year
current assets --------------------------- 735,000 ------------ 820,000
property, plant, and equipment----------- 1,500,000--------- 1,400,000
current liabilities
(non interest bearing)---------------------- 150,000------------ 140,000
Long-term liabilities------------------------ 400,000 ----------- 400,000
preferred 10% stock---------------------- 250,000----------- 250,000
common stock, $25 par----------------- 1,200,000---------- 1,200,000
Retained earnings:
Beginning of year------------------------ 230,000---------- 160,000
Net inome for year----------------------- 85,000---------- 155,000
Preferred dividends declared----------- (25,000)---------- (25,000)
Common dividends declared----------- (60,000)--------- (60,000)
a.) rate earned on total assets: 85,000/735,000=11565
b.) rate earned on stockholders' equity: 85,000/400,000=2125
c.) rate earned on common stockholders' equity= 85,000-(25,000)/1,200,000=.05
d.) earnings per share on common stock: 85,000-(25,000)/$25=2,400
e.)price-earnings ratio on common stock: 25/27=.92
f.) dividend yield on common stock=(60,000)/$27=2222
Is this correct if not please help me.
Thanks,
