On December 31, the equity section of O'Neil Corporation's balance sheet consisted of the following.
Total shares authorized, issued, and outstanding on December 31, 2010 follow, as do the 2010 common and preferred dividends.
O'Neil's 2010 net income is $125,200.
Required:
a. How many shares of treasury stock does O'Neil have outstanding? Is this common or preferred stock?
b. Calculate O'Neil's book value per share.
c. Calculate O'Neil's return on equity.
d. Calculate O'Neil's dividend yield on common and preferred stock. Stock price for 2010 averaged $5 for common stock and $20 for preferred stock.

Question

On December 31, the equity section of O'Neil Corporation's balance sheet consisted of the following.
  Total shares authorized, issued, and outstanding on December 31, 2010 follow, as do the 2010 common and preferred dividends.
  O'Neil's 2010 net income is $125,200.
Required:
a. How many shares of treasury stock does O'Neil have outstanding? Is this common or preferred stock?
b. Calculate O'Neil's book value per share.
c. Calculate O'Neil's return on equity.
d. Calculate O'Neil's dividend yield on common and preferred stock. Stock price for 2010 averaged $5 for common stock and $20 for preferred stock.

Quizplus · Accepted Answer

The Answer of On December 31, the equity section of O'Neil Corporation's balance sheet consisted of the following.
  Total shares authorized, issued, and outstanding on December 31, 2010 follow, as do the 2010 common and preferred dividends.
  O'Neil's 2010 net income is $125,200.
Required:
a. How many shares of treasury stock does O'Neil have outstanding? Is this common or preferred stock?
b. Calculate O'Neil's book value per share.
c. Calculate O'Neil's return on equity.
d. Calculate O'Neil's dividend yield on common and preferred stock. Stock price for 2010 averaged $5 for common stock and $20 for preferred stock.

On December 31, the Equity Section of O'Neil Corporation's Balance