The following financial information is available for Novak Corporation. (in millions) Average common stockholders' equity Dividends declared for common stockholders Dividends declared for preferred stockholders Net income (a1) 2025 $3,000 $3,025 363 45 2024 600 676 45 650 Calculate the payout ratio and return on common stockholders' equity for 2025 and 2024. (Round answers to 1 decimal place, e.g. 12.5%.)

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 10BE: A company reports the following: Determine (a) the return on stockholders equity and (b) the return...
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The following financial information is available for Novak Corporation.
(in millions)
Average common stockholders' equity
Dividends declared for common stockholders
Dividends declared for preferred stockholders
Net income
(a1)
Payout ratio
2025
Return on common stockholders' equity
$3,000 $3,025
363
45
600
2024
2025
676
Calculate the payout ratio and return on common stockholders' equity for 2025 and 2024. (Round answers to 1 decimal place, e.g.
12.5%.)
45
650
%
%
2024
%
%
Transcribed Image Text:The following financial information is available for Novak Corporation. (in millions) Average common stockholders' equity Dividends declared for common stockholders Dividends declared for preferred stockholders Net income (a1) Payout ratio 2025 Return on common stockholders' equity $3,000 $3,025 363 45 600 2024 2025 676 Calculate the payout ratio and return on common stockholders' equity for 2025 and 2024. (Round answers to 1 decimal place, e.g. 12.5%.) 45 650 % % 2024 % %
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