On January 1, 2020 ,Herron Corporation purchased 5,000 shares of treasury stock. Other information regarding Herron Corporation is provided as follows. Compute (a) return on common stockholders' equity for each year, and (b) discuss the changes in each. 2018 2017 Net income $100,000 $110,000 Dividends on preferred stock $ 30,000 $ 30,000 Dividends on common stock $ 25,000 $ 15,000 Weighted-average number of common shares outstanding 45,000 50,000 Common stockholders' equity beginning of year $750,000 $685,000 Common stockholders' equity end of year $795000 $750,000

On January 1, 2020 ,Herron Corporation purchased 5,000 shares of treasury stock. Other information regarding Herron Corporation is provided as follows. Compute (a) return on common stockholders' equity for each year, and (b) discuss the changes in each. 2018 2017 Net income $100,000 $110,000 Dividends on preferred stock $ 30,000 $ 30,000 Dividends on common stock $ 25,000 $ 15,000 Weighted-average number of common shares outstanding 45,000 50,000 Common stockholders' equity beginning of year $750,000 $685,000 Common stockholders' equity end of year $795000 $750,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 8MC: Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde...

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	2018	2017
Net income	$100,000	$110,000
Dividends on preferred stock	$ 30,000	$ 30,000
Dividends on common stock	$ 25,000	$ 15,000
Weighted-average number of common shares outstanding	45,000	50,000
Common stockholders' equity beginning of year	$750,000	$685,000
Common stockholders' equity end of year	$795000	$750,000

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