What are the rate of return on stockholders’ equity and the rate of return on common stockholders’…


What are the rate of return on stockholders’ equity and the rate of return on common stockholders’ equity (rounded to the nearest one-tenth of a percent) given the following information:

Net Income

$350,000

Preferred Dividends

20,000

Common Stock

48,000

Common Stockholders’ Equity 1/1/2011

4,400,000

Total Stockholders’ Equity 1/1/2011

5,300,000

Total Stockholders’ Equity 12/31/2011

5,500,000

A. Return on Stockholders’ Equity: 6.5 %; Return on Common Stockholders’ Equity: 7.6%

B. Return on Stockholders’ Equity: 8.1 %; Return on Common Stockholders’ Equity: 9.2%

C. Return on Stockholders’ Equity: 7.8 %; Return on Common Stockholders’ Equity: 8.9%

D. Return on Stockholders’ Equity: 5.6 %; Return on Common Stockholders’ Equity: 6.7%

[Button id=”1″]



Source link

Thanks for installing the Bottom of every post plugin by Corey Salzano. Contact me if you need custom WordPress plugins or website design.

Looking for a Similar Assignment? Our ENL Writers can help. Get your first order at 15% off!

Order

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp
%d bloggers like this: