1%
b) Rate earned on total assets = Net income + Interest expense)/
Average total assets
= $250,000 + 0)/$2,200,000
= 11.4%
c) Rate earned on common stockholders' equity
= $250,000 - $0)/$1,000,000
= 25%
d) Earnings per share on common stock = $250,000/10,000
= $25 per share

Question

Quizplus · Accepted Answer

The Answer of 1%
b) Rate earned on total assets = Net income + Interest expense)/
Average total assets
= $250,000 + 0)/$2,200,000
= 11.4%
c) Rate earned on common stockholders' equity
= $250,000 - $0)/$1,000,000
= 25%
d) Earnings per share on common stock = $250,000/10,000
= $25 per share

1% B) Rate Earned on Total Assets = Net Income