Consider the following data for XYZ Corporation: Net income $600,000 Preferred stock dividends $40,000 Market price per share of stock $30 Average common stockholders' equity $2,800,000 Cash dividends declared on common stock $25,000 What is the return on common stockholders' equity? A. 18.57% B. 20.00% C. 21.43% D. 19.29%

Consider the following data for XYZ Corporation: Net income $600,000 Preferred stock dividends $40,000 Market price per share of stock $30 Average common stockholders' equity $2,800,000 Cash dividends declared on common stock $25,000 What is the return on common stockholders' equity? A. 18.57% B. 20.00% C. 21.43% D. 19.29%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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what is the return on common stockholders equity ?
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A company reports the following: Net income Preferred dividends Average stockholders' equity $190,000 7,600 1,532,258 848,372 Average common stockholders' equity Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity b. Return on Common Stockholders' Equity % %