The average stockholder's equity for horn co. last year was P3,000,000. Included in this figure was P500,000 par value of 8% preferred stock. If the return on common stockholder's equity was 12.5% for the year, the net income was P___?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 53E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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The average stockholder's equity for horn co. last year was P3,000,000. Included in this figure was P500,000 par value of 8% preferred stock. If the return on common stockholder's equity was 12.5% for the year, the net income was P___?

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