The following financial information was taken from a firm's accounting records on December 31, 2013. Use this information to determine the items below. $\begin{array}{lr}
\text { Net Sales } & \$ 800,000 \
\text { Income Tax Expense } & 8,000 \
\text { Net Income After Income Tax } & 40,000 \
\text { Common Stock ( } \$ 25 \text { par value) } & 200,000 \
\text { Retained Earnings } & 220,000
\end{array}$ Cash dividends of $22,000 were paid on the common stock in 2013. Market price of the common stock on December 31 was $50.
(1) Rate of return on common stockholders' equity.
(2) Earnings per share of common stock.
(3) Price-earnings ratio.
(4) Yield on common stock.

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The Answer of The following financial information was taken from a firm's accounting records on December 31, 2013. Use this information to determine the items below. $\begin{array}{lr}
\text { Net Sales } & \$ 800,000 \
\text { Income Tax Expense } & 8,000 \
\text { Net Income After Income Tax } & 40,000 \
\text { Common Stock ( } \$ 25 \text { par value) } & 200,000 \
\text { Retained Earnings } & 220,000
\end{array}$ Cash dividends of $22,000 were paid on the common stock in 2013. Market price of the common stock on December 31 was $50.
(1) Rate of return on common stockholders' equity.
(2) Earnings per share of common stock.
(3) Price-earnings ratio.
(4) Yield on common stock.

The Following Financial Information Was Taken from a Firm's Accounting