The Following Data Are Taken from the Financial Statements:
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question 52

Essay

The following data are taken from the financial statements:
​ $\begin{array}{lrr}&\text { Current } & \text { Preceding } \\&\text { Year } & \text { Year }\\\text { Current assets } & \$ 745,000 & \$ 820,000 \\\text { Property, plant, and equipment } & 1,510,000 & 1,400,000\\\text { Current liabilities } &\\\text { (non-interest-bearing) } & 160,000 & 140,000 \\\text { Long-term liabilities, } 12 \% & 400,000 & 400,000 \\\text { Preferred } 10 \% \text { stock } & 250,000 & 250,000 \\\text { Common stock, } \$ 25 \text { par } & 1,200,000 & 1,200,000\\\text { Retained eamings, }\\\text { beginning of year } & 230,000 & 160,000 \\\text { Net income for year } & 110,000 & 155,000 \\\text { Preferred dividends declared } & (25,000) & (25,000) \\\text { Common dividends declared } & (70,000) & (60,000)\end{array}$ ​
Determine for the current year the (a) return on total assets, (b) return on stockholders' equity,
(c) return on common stockholders' equity, (d) earnings per share on common stock, (e) price-earnings
ratio on common stock, and (f) dividend yield. The current market price per share of
common stock is $25.
Round dollar values to two decimal places and other final answers to one decimal place.

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Definitions:

Gray Matter

Neural tissue in the brain and spinal cord consisting mainly of neuronal cell bodies, dendrites, and unmyelinated axons, involved in processing and cognition.

Circulatory System

The system responsible for the movement of blood and lymph through the body, delivering oxygen and nutrients to cells and removing waste products.

Respiratory System

The biological system consisting of specific organs and structures used for gas exchange in animals and plants, primarily involving the inhalation of oxygen and the exhalation of carbon dioxide in humans and other mammals.

Menarche

The onset of menstruation.