Korsak Corporation decided to issue common stock and used the $331,700 proceeds to redeem all of its outstanding bonds on January 1, 2014. The following information is available for the company for 2013 and 2014.
|
|
2014
|
|
2013
|
| Net income |
|
$ 188,300 |
|
$ 148,100 |
| Dividends declared for preferred stockholders |
|
6,300 |
|
9,000 |
| Average common stockholders' equity |
|
1,287,100 |
|
814,400 |
| Total assets |
|
1,629,900 |
|
1,374,600 |
| Current liabilities |
|
167,700 |
|
128,600 |
| Total liabilities |
|
342,800 |
|
560,200
|
Compute the return on common stockholders' equity for both years.
|
|
|
|
|
| The return on common stockholders' equity ratio |
|
|
2013_______% |
2014_______ |
|
% |
Compute the debt to total assets ratio for both years.
|
|
|
|
|
| The debt to total assets ratio 2013_____ |
|
|
% 2014_____ |
|
|
% |