A company paid cash dividends on its preferred stock of $40,000 in the current year when its net income was $120,000 and its average common stockholders' equity was $640,000. What is the company's return on common stockholders' equity?

What will be an ideal response?


($120,000 - $40,000)/$640,000 = 12.5%

Business

You might also like to view...

Which theme related to Gen Xers relates to working to define problems, developing solutions at one’s own pace, and produce results?

a. Belonging b. Learning c. Entrepreneurship d. Security

Business

Describe the types of computer support that can be used for structured, semistructured, and unstructured decisions

What will be an ideal response?

Business

The ___ ______ is the center of a computer network

Fill in the blank(s) with the appropriate word(s).

Business

The amount of bleach a machine pours into bottles has a mean of 50 ounces with a standard deviation of 0.25 ounces. Suppose we take a random sample of 36 bottles filled by this machine. The sampling distribution of the sample mean has a standard error of 0.25 ounces

Indicate whether the statement is true or false

Business