For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B?

For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average stockholders' equity for the same period was P500,000, inclusive of P50,000 par value of preferred stock with a dividend rate of 8%. How much was the company's net income for 201B?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Multiple Choice
For the year 201B, ABC Company's
return on common stockholders'
equity was 12.5%. Its average
stockholders' equity for the same
period was P500,000, inclusive of
P50,000 par value of preferred stock
with a dividend rate of 8%.
How much was the company's net
income for 201B?
O P60,250
P56,250
O P58,500
P62,500
4 of 20

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