Return on common stockholders equity

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Reference no: EM13955753

Comparative financial statements for the Rahul Corporation for the year ended December 31 are given below. A total of 500,000 shares of stock were outstanding. The market value of the company's stock at the end of the year was $25.

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Comparative Income Statement and Reconciliation of Retained Earnings 
For the Year Ended December 31, 2012 and 2011

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Required:

Compute the following financial ratios for the year 2012:
a. Gross margin percentage.
b. Earnings per share.
c. Price earnings ratio.
d. Return on total assets.
e. Return on common stockholders equity.
Comment on the results. 

Reference no: EM13955753

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