The following information pertains to Parsons Co
The following information pertains to Parsons Co
Preferred stock,cumulative
Par value per share $100
Dividend rate 8%
Shares outstanding 11,000
Dividends in arrears none
Common stock:
Par value per share $10
Shares issued 120,000
Dividends paid per share $2.10
Market price per share $49.00
Additional paid-in capital $480,000
Unappropriated retained earnings (after closing) $290,000
Retained earnings appropriated for contingencies $300,000
Common treasury stock:
Number of shares 11,000
Total cost $250,000
Net income $646,000
Compute (asume no changes in balances during the past year)
Total amount of stockholders equity in the balance sheet $3,120,000
Earnings per share of common stock $6.12 per share
Book value per share of common stock $18.53 per share
Payout ratio of common stock 34%
Return on common equity
I am struggling with the calculation to find the percent of return on common equity. Can you also verify if my figure for the payout ration of common stock 34% is calculated correctly. Thank you
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