The following data have been taken from the records of Bundy's Bakery for the current year:
$$\begin{array} { l r }
\text { Current assets } & \$ 52,000 \
\text { Long-term assets } & \$ 106,000 \
\text { Current liabilities } & \$ 20,000 \
\text { Long-term liabilities } & \$ 30,000 \
\text { Total stockholders' equity } & \$ 108,000 \
\text { Earnings per share } & \$ 8 \
\text { Dividends per common share } & \$ 4 \
\text { Net income } & \$ 20,000
\end{array}$$
a.Calculate the dividends payout ratio.
b.Calculate the return on common stockholders' equity.

Question

The following data have been taken from the records of Bundy's Bakery for the current year:
 $$\begin{array} { l r } 
\text { Current assets } & \$ 52,000 \
\text { Long-term assets } & \$ 106,000 \
\text { Current liabilities } & \$ 20,000 \
\text { Long-term liabilities } & \$ 30,000 \
\text { Total stockholders' equity } & \$ 108,000 \
\text { Earnings per share } & \$ 8 \
\text { Dividends per common share } & \$ 4 \
\text { Net income } & \$ 20,000
\end{array}$$ 
a.Calculate the dividends payout ratio.
b.Calculate the return on common stockholders' equity.

Quizplus · Accepted Answer

The Answer of The following data have been taken from the records of Bundy's Bakery for the current year:
 $$\begin{array} { l r } 
\text { Current assets } & \$ 52,000 \
\text { Long-term assets } & \$ 106,000 \
\text { Current liabilities } & \$ 20,000 \
\text { Long-term liabilities } & \$ 30,000 \
\text { Total stockholders' equity } & \$ 108,000 \
\text { Earnings per share } & \$ 8 \
\text { Dividends per common share } & \$ 4 \
\text { Net income } & \$ 20,000
\end{array}$$ 
a.Calculate the dividends payout ratio.
b.Calculate the return on common stockholders' equity.

The Following Data Have Been Taken from the Records of Bundy's