The following financial information is available for Makoto Corporation. $\begin{array}{lrr}
&2017&2016\
\text { Average common stockholders' equity } & \$ 1,600,000 & \$ 1,200,000 \
\text { Dividends paid to common stockholders } & 50,000 & 30,000 \
\text { Dividends paid to preferred stockholders } & 20,000 & 20,000 \
\text { Net income } & 260,000 & 182,000
\end{array}$
The weighted average number of shares of common stock outstanding was 80000 for 2016 and 100000 for 2017.
Instructions
Calculate earnings per share and return on common stockholders' equity for 2017 and 2016.

Question

The following financial information is available for Makoto Corporation. $\begin{array}{lrr}
&2017&2016\
\text { Average common stockholders' equity } & \$ 1,600,000 & \$ 1,200,000 \
\text { Dividends paid to common stockholders } & 50,000 & 30,000 \
\text { Dividends paid to preferred stockholders } & 20,000 & 20,000 \
\text { Net income } & 260,000 & 182,000
\end{array}$
 The weighted average number of shares of common stock outstanding was 80000 for 2016 and 100000 for 2017.
Instructions
Calculate earnings per share and return on common stockholders' equity for 2017 and 2016.

Quizplus · Accepted Answer

The Answer of The following financial information is available for Makoto Corporation. $\begin{array}{lrr}
&2017&2016\
\text { Average common stockholders' equity } & \$ 1,600,000 & \$ 1,200,000 \
\text { Dividends paid to common stockholders } & 50,000 & 30,000 \
\text { Dividends paid to preferred stockholders } & 20,000 & 20,000 \
\text { Net income } & 260,000 & 182,000
\end{array}$
 The weighted average number of shares of common stock outstanding was 80000 for 2016 and 100000 for 2017.
Instructions
Calculate earnings per share and return on common stockholders' equity for 2017 and 2016.

The Following Financial Information Is Available for Makoto Corporation The Weighted Average Number of Shares of Common Stock Outstanding