Homework Help is Here – Start Your Trial Now!
Business
Accounting
Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 1,000,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator $129,600 1,500,000 5.40 8.64 56.70 Did the return improve? The return on common stockholders' equity decreased Denominator ◆ Average stockholders' equity X 8x + X X from the previous year to the current year. ROE % %

Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 1,000,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator $129,600 1,500,000 5.40 8.64 56.70 Did the return improve? The return on common stockholders' equity decreased Denominator ◆ Average stockholders' equity X 8x + X X from the previous year to the current year. ROE % %

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
See similar textbooks
icon
Related questions
Question
Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 $129,600 1,000,000 1,500,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator 5.40 8.64 56.70 Denominator ◆ Average stockholders' equity X 8 x Did the return improve? The return on common stockholders' equity decreased X X from the previous year to the current year. ROE % %
Transcribed Image Text:Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 $129,600 1,000,000 1,500,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator 5.40 8.64 56.70 Denominator ◆ Average stockholders' equity X 8 x Did the return improve? The return on common stockholders' equity decreased X X from the previous year to the current year. ROE % %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS