The following financial information is available for Plummer Corporation.
|
2014 |
2013 |
|
|
Average common stockholders” equity |
$1,200,000 |
$900,000 |
|
Dividends paid to common stockholders |
50,000 |
30,000 |
|
Dividends paid to preferred stockholders |
20,000 |
20,000 |
|
Net income |
290,000 |
200,000 |
|
Market price of common stock |
20 |
15 |
The weighted-average number of shares of common stock outstanding was 80,000 for 2013 and 100,000 for 2014.
Instructions
Calculate earnings per share and return on common stockholders’ equity for 2014 and 2013.