On january 1, 2017, vahsholtz corporation purchased 5,000 shares of treasury stock. other information regarding vahsholtz corporation is provided as follows. 2017 2016 net income $110,000 $100,000 dividends on preferred stock $30,000 $30,000 dividends on common stock $25,000 $20,000 weighted-average number of common shares outstanding 45,000 50,000 common stockholders’ equity beginning of year $750,000 $600,000 common stockholders’ equity end of year $830,000 $750,000 (a) compute return on common stockholders’ equity for each year. (round answers to 1 decimal place, e. g. 15.2.) 2016 2017 return on common stockholders' equity

2016 = 10.4%

2017 = 10.1%

Explanation:

The formula to compute the return on common stockholders’ equity is shown below:

= (Net income - preference dividend) ÷ (Average Common stockholders' equity)

For 2017

Net income is $110,000

Preference dividend = $30,000

And, the Average Common stockholders' equity would be

= (Opening Common stockholders' equity + Ending Common stockholders' equity) ÷ 2

= ($750,000 + $830,000) ÷ 2

= $790,000

Now put these values to the above formula  

So, the value would equal to

= ($110,000 - $30,000) ÷ ($790,000)

= 10.1%

For 2016

Net income is $100,000

Preference dividend = $30,000

And, the Average Common stockholders' equity would be

= (Opening Common stockholders' equity + Ending Common stockholders' equity) ÷ 2

= ($600,000 + $750,000) ÷ 2

= $675,000

Now put these values to the above formula  

So, the value would equal to

= ($100,000 - $30,000) ÷ ($675,000)

= 10.4%

definitely a

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know