Tallow, Inc. had reported the following balances: LOADING...(Click the icon to view the 2018 and 2019 balances.) 11. Compute Tallow's earnings per share for 2019. 12. Compute Tallow's price/earnings ratio for 2019, assuming the market price is $ 35 per share. 13. Compute Tallow's rate of return on common stockholders' equity for 2019. 11. Compute Tallow's earnings per share for 2019.

Explanation:

Rate of return on common stockholder's equity for 2019:

= (Net Income - Preferred Dividend) / Av. common stockholder's equity

= ($94,000 - $26,000) / $312,000

= $68,000 / $312,000

= 0.2179 or 21.79%

Av. common stockholder's equity 2019 :

Total stockholder's equity 2018 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $318,000 - $22,000

= $296,000

Total stockholder's equity 2019 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $350,000 - $22,000

= $328,000

Av. common stockholder's equity 2019 = ($296,000 + $328,000) / 2 = $312,000

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