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:

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A leadership theory that suggests leaders should adjust their style to fit the employees and task environment to achieve a goal.

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A principle emphasizing the importance of prioritizing the needs and well-being of others over one's own interests.