A company's net income in 2023 was $275,000. The company paid preferred dividends of $50,000, and its average common stockholders' equity was $810,000. The company's return on common stockholders' equity for the year was closest to: a. 32.65% b. 27.78% c. 35.84% d. 24.61%

A company's net income in 2023 was $275,000. The company paid preferred dividends of $50,000, and its average common stockholders' equity was $810,000. The company's return on common stockholders' equity for the year was closest to: a. 32.65% b. 27.78% c. 35.84% d. 24.61%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 53E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Question

Solve this financial Accounting problem

A company's net income in 2023 was $275,000.
The company paid preferred dividends of $50,000,
and its average common stockholders' equity was
$810,000.
The company's return on common stockholders'
equity for the year was closest to:
a. 32.65%
b. 27.78%
c. 35.84%
d. 24.61%

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