Calculate the return on common equity in the second year

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Reference no: EM131014506

The company had assets of $7050 million in the frist year and $11278 million in the second year. Common equity was equal to $3750 million in the first year, 100% of earnings were paid out as dividends in the first, and the firm did not issue new stock in the second year.

Net sale $ 3810 million

operating cost except depreciation and amortization $1120 Million

operating income $2499 million

Interest $337 million

Earning before taxes $2162 million

taxes $865 million

Net income $1297 million

Calculate the Return on common equity in the second year? Round the percentage into tow decimal places

Reference no: EM131014506

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Calculate the return on common equity in the second year : The company had assets of $7050 million in the frist year and $11278 million in the second year. Common equity was equal to $3750 million in the first year, 100% of earnings were paid out as dividends in the first, and the firm did not issue new stoc..

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