1) The following information pertains to Sheridan Company. Assume that all balance sheet amounts represent average balance figures.
Total assets $325000
Stockholders' equity-common 205000
Total stockholders' equity 267000
Sales revenue 96000
Net income 20500
Number of shares of common stock 7500
Common dividends 4600
Preferred dividends 8500
What is Sheridan's payout ratio?
7%.
22.44%.
16%.
36%.
2) Bramble Corp. had net income of $94700 and paid dividends of $30000 to common stockholders and $15500 to preferred stockholders in 2017. Bramble Corp. common stockholders' equity at the beginning and end of 2017s was $440000 and $550000, respectively. Bramble Corp. return on common stockholders' equity is
11%.
15%.
20%.
16%.