Holland Corporation's annual report is as follows
March 31, 2016 March 31, 2017
Net Income $350,000 $441,500
Preferred Dividends 0 0
Total Stockholders' Equity $4,380,000 $5,092,000
Stockholders' Equity attributable to Preferred Stock 0 0
Number of Common Shares Outstanding 284,000 195,000
Based on the information provided, find the rate of return on common stockholders' equity on March 31, 2017. (Round your final answer two decimal places.)
A) 8.36%
B) 9.32%
C) 8.67%
D) 7.99%
B .B) Average Common Stockholders' Equity - (4,380,000 + 5,092,000 ) / 2 = 4,736,000
Rate of Return on Common Stockholders' Equity = Net Income / Average Common Stockholders' Equity
Average Common Stockholders' Equity = 441,500 / 4,736,000 = 9.32%
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