Use the following selected financial data from the balance sheet at the end of 2020 and 2019: Net income for 2020 and 2019 was $120,000 and $460,000, respectively. No stock was issued during either year, but dividends of $20,000 and $16,000 were paid in 2020 and 2019, respectively.
A)What is return on common equity ratio for 2020?
B)What is the dividend payout ratio for 2020?
C)What is the earnings per share measure for 2020?
D)What other stockholder ratios would be helpful in assessing information of interest to stockholders?

Question

Use the following selected financial data from the balance sheet at the end of 2020 and 2019:  Net income for 2020 and 2019 was $120,000 and $460,000, respectively. No stock was issued during either year, but dividends of $20,000 and $16,000 were paid in 2020 and 2019, respectively.
A)What is return on common equity ratio for 2020? 
B)What is the dividend payout ratio for 2020? 
C)What is the earnings per share measure for 2020? 
D)What other stockholder ratios would be helpful in assessing information of interest to stockholders?

Quizplus · Accepted Answer

The Answer of Use the following selected financial data from the balance sheet at the end of 2020 and 2019:  Net income for 2020 and 2019 was $120,000 and $460,000, respectively. No stock was issued during either year, but dividends of $20,000 and $16,000 were paid in 2020 and 2019, respectively.
A)What is return on common equity ratio for 2020? 
B)What is the dividend payout ratio for 2020? 
C)What is the earnings per share measure for 2020? 
D)What other stockholder ratios would be helpful in assessing information of interest to stockholders?

Use the Following Selected Financial Data from the Balance Sheet