Consider the Following Financial Statement Information Calculate the Return on Common Equity and Earnings Per Share

question 52

Essay

Consider the following financial statement information:
$\begin{array}{ll}& \underline { 2015 }& \underline { 2014 }\\\text { Preferred Stock } & \$ 4,500&\$ 4,000 \\\text { Total Stockhalders Equity } & \$ 49,050&\$ 45,900 \\\text { Net Income } & \$ 10,002 \\\text { Stock Price per Common Share } & \$ 113 \\\text { Common Dividends } & \$ 521 \\\text { Preferred Dividends } & \$ 140 \\\text { Purchases of Treasury Stock } & \$ 8,061 \\\text { Dividends per Common Share } & \$ 1.30\\\\ \text { Average Common SharesOutstanding } & 400\end{array}$ Calculate the return on common equity and earnings per share ratios.

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Definitions:

Statistical Tool

Software or methods used for the analysis, interpretation, and visualization of statistical data.

Causality

The relationship between cause and effect where one variable causes the change in another.

Multiple Regression

An approach in statistics where multiple predictors are used to estimate the outcome of a target variable.

Path Analysis

A specialized type of structural equation modeling used to describe directed dependencies among a set of variables, suitable for analyzing complex causal relationships.