Storybooks return on common stockholders equity

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Reference no: EM13863572

Storybook Cruises reported net income of $2,880 million for the year ended December 31, 2012. Total stockholders' equity for the year ended December 31, 2012 was $20,100 million and on December 31, 2011, it was $20,900 million. No preferred stock was outstanding in either year.

Required:

1. Compute Storybook's return on common stockholders' equity for the year ended December 31, 2012. Round your answer to two decimal places.

2. What other ratio would you want to compute to decide whether Storybook is successfully employing leverage? Explain your answer.

Reference no: EM13863572

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