Assume that all balance sheet amounts for Sheridan Company represent average bal

Question

Assume that all balance sheet amounts for Sheridan Company represent average balance figures.

What is the return on common stockholders’ equity for Sheridan?

Question 10

The following data is available for Marigold Service Corporation at December 31, 2017:

Based on the data, how many shares of common stock are outstanding?

Stockholders’ equity?common $160000 Total stockholders’ equity 210000 Sales 109000 Net income 31000 Number of shares of common stock 8000 Common stock dividends 8000 Preferred stock dividends 4200

Explanation / Answer

1 Correct Answer is = 16.8% Reurn on Common stock equity for Sheridan: (Net Income - Preferred stock dividends) / Shareholder,s Equity ($31,000 - $4,200) / $1,60,000 = 16.8% 2 Correct Answer is = 24,140 Outstanding No. Of Shares of Common Stock are: (Common Stock Shares - Treasury Stock Shares) Common Stock Shares ($2,42,000/$10) = 24200 Less: Treasury Stock Shares ($900/$15) = 60 24140

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