Business, 26.02.2020 02:52 joejoefofana

Mann Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January 1, 2017. The following information is available for the company for 2016 and 2017. 2017 2016 Net income $120,000 $100,000 Average stockholder's equity 1,000,000 800,000 Total assets 1,200,000 1,200,000 Current liabilities 100,000 100,000 Total liabilities 360,000 480,000 (a) Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e. g. 10.2%.) 2017 2016 Return on common stockholders' equity % %

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Answer from: Theresab2021

Return on equity in 2017 is 12% while that of 2016 is 12.5%

Explanation:

The formula for return on equity is given as net income/equity.

The net income is $120000 for 2017 and $100000 for 2016.

Shareholders' average equity is 1000000 shares in 2017 and 800000 shares in 2016.

2017 2016

Return on equity 120000/1000000 100000/800000

Return on equity 0.12 0.125

The return on equity is 12.0% in 2017 and 12.5% in 2016.

From all indications, the issue of additional shares to the tune of $120000 lead to a reduction in return on equity in 2017 by 0.5%

Answer from: Quest

you can lose ranking 2 ways.

1) you don't have enough points due to you expending them by asking questions/your answers are deleted.

2) your brainliest's expired. this means that brainliests, once they exceed the 30 day limit, expires. this is to ensure that you continue to contribute into the community at a constant rank if you want to continue to have/exceed the rank you have right now.

if you go to profile, and click "show more information" located on the bottom left of the box with your information (on top of the questions answered, questions asked, and friends), you will be given the following information (example):

member since : 02/13/2017, 18: 11

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look at the "brainliest answers in the last 30 days". this is the one that will affect your rank other than your points. again, once your brainliest expires (was earned 31+ days ago), it will not be counted.

Answer from: Quest

Pay attention in class and maybe you would know

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