How do you find Owners Equity?

How to find Return on common stockholders' equity?

• How to find Return on common stockholders' equity? Given: (2010) Income: $60000 Preferred stock, 10% $100 par: $250,000 Common Stock, no par: $600,000 Retained earnings: $350,000 Total stockholder's equity: $1,200,000 (2009) Assume that the only changes in stockholder's equity during the year were from the net income for the year and dividends on the preferred stock. ^ So does that mean the total stockholder's equity in 2009 = 1,200,000 - income - dividend? Looking for the return on common stockholders' equity is the equation?: Income - preferred dividend (in this case $25,000) / average total stockholder's equity

• Answer:

  **** Samuelson