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Refer to the Financial Information for St

Question 196

Essay

Refer to the financial information for St. Petersburg Corporation.
REQUIRED:
A Calculate the return on assets ratio for St. Petersburg for 2016. What is the reason for the adjustment of interest?
B Calculate the return on common stockholders' equity ratio for 2016 for St. Petersburg. What is the reason for the adjustment of preferred dividends?

Correct Answer:

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A Net income + Interest expense, net of ...

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