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:

Hematocrit

The ratio of the volume of red blood cells to the total volume of blood, expressed as a percentage.

Red Blood Cells

Disc-shaped cells essential for transporting oxygen throughout the body using a protein called hemoglobin.

Universal Donor

Refers to a person with O negative blood type, whose blood can be transfused into persons of any other blood type in emergency situations.

Type O

A blood group in the ABO system characterized by the absence of A and B antigens on red cells and the presence of anti-A and anti-B antibodies in the plasma.