1% B) Rate Earned on Total Assets = Net Income

question 192

Essay

1%
b) Rate earned on total assets = Net income + Interest expense)/
Average total assets
= $250,000 + 0)/$2,200,000
= 11.4%
c) Rate earned on common stockholders' equity
= $250,000 - $0)/$1,000,000
= 25%
d) Earnings per share on common stock = $250,000/10,000
= $25 per share

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Definitions:

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Treatment Strategy

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