On January 1, 2010, Tuscany Corporation purchased 1,000 shares of treasury stock. Other information regarding Tuscany Corporation is provided below.
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2009
|
2010
|
|
Net income
|
$200,000
|
$210,000
|
|
Dividends on preferred stock
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$30,000
|
$30,000
|
|
Dividends on common stock
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$20,000
|
$25,000
|
|
Weighted average number of common shares outstanding
|
10,000
|
9,000
|
|
Common stockholders' equity beginning of year
|
$600,000
|
$750,000
|
|
Common stockholders' equity end of year
|
$750,000
|
$830,000
|
Compute (a) return on common stockholders' equity for each year and (b) earnings per share for each year, and (c) discuss the changes in each.