Shown below is the liabilities and stockholders’ equity section of the balance sheet for Jana Kingston Company and Mary Ann Benson Company. Each has assets totaling $4,476,100. Jana Kingston Co. Mary Ann Benson Co. Current liabilities $322,400 Current liabilities $822,400 Long-term debt, 8% 1,303,000 Common stock ($20 par) 2,941,000 Common stock ($20 par) 2,138,000 Retained earnings (Cash dividends, $328,600) 712,700 Retained earnings (Cash dividends, $225,100) 712,700 $4,476,100 $4,476,100 For the year, each company has earned the same income before interest and taxes. Jana Kingston Co. Mary Ann Benson Co. Income before interest and taxes $1,218,000 $1,218,000 Interest expense 104,240 0 1,113,760 1,218,000 Income taxes (45%) 501,192 548,100 Net income $612,568 $669,900 At year end, the market price of Kingston’s stock was $101 per share, and Benson’s was $63.50. Assume balance sheet amounts are representative for the entire year. (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85%.) Return on total assets Kingston Company Entry field with incorrect answer 27.21 % Benson Company Entry field with incorrect answer 27.21 % Which company is more profitable in terms of return on total assets? Entry field with incorrect answer (b) Calculate the return on common stock equity? (Round answers to 2 decimal places, e.g. 16.85%.) Return on common stock equity Kingston Company Entry field with incorrect answer 28.65 % Benson Company Entry field with incorrect answer 22.78 % Which company is more profitable in terms of return on common stock equity? Entry field with correct answer (c) Calculate the Net income per share. (Round answers to 2 decimal places, e.g. $6.85.) Net income per share Kingston Company $Entry field with incorrect answer Benson Company $Entry field with incorrect answer Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. Entry field with incorrect answer (d1) From the point of view of net income, is it advantageous to the stockholders of Jana Kingston Co. to have the long-term debt outstanding? Entry field with correct answer (e) What is the book value per share for each company? (Round answers to 2 decimal places, e.g. $6.85.) Book value per share Kingston Company $Entry field with incorrect answer Benson Company $Entry field with incorrect answer