The following selected data were taken from the financial statements of Berry Group Inc. for December 31, 2008 , 2007, 2006:
Dec 31, Dec 31 Dec 31
2008 2007 2006
Total assets………….. $1,160,000 $1,040,000 $880,000
Notes payable……….. 150,000 150,000 150,000
Common stock………. 360,000 360,000 360,000
Preferred $8 stock, $100 par
(no change during year)……. 160,000 160,000 160,000
Retained earnings………… 426,900 327,200 205,000
The 2008 net income was $112,500, and the 2007 net income was $135,000. No dividends on common stock were declared between 2006 and 2008.
a. Determine the rate earned on total assets, the rate earned on stockholders equity and the rate earned on common stockholders equity for the years 2007 and 2008. Round to one decimal place
