Craft Company's net income last year was $50,000. The company paid preferred dividends of $20,000 and its average common stockholders' equity was $480,000. The company's return on common stockholders' equity for the year was closest to
A) 10.4%
B) 14.6%
C) 6.3%
D) 4.2%
C
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Clementine Co computes depreciation to the nearest whole month and uses the straight-line method. On May 2, 2015, the company purchased an asset for $18,000 with a four-year life and a $3,600 residual value. On October 6, Karen also sold an asset with a cost of $34,500 that had been purchased in 2015. The sold asset had been estimated to have a five-year life and no residual value when it was
purchased. The depreciation expense on these two assets for 2015 totals A) $7,575 B) $10,500 C) $9,300 D) $7,600
Graphical analysis of the balance sheet can be useful in assessing sources of financing.
Answer the following statement true (T) or false (F)
________ advertising is often the most cost-effective medium available to a company.
Fill in the blank(s) with the appropriate word(s).
Billy's accountant made an error, and the budget has been reduced from $3000 to $2500. Billy's profit will go down by:
A) $0. B) $625. C) $1350. D) $1650.