White’s Dagobah Swamp Care, LLC, reports the following.  Use the information to answer questions 32 and 33:   Net income    $     350,000 Preferred dividends              50,000 Average stockholders' equity        1,000,000 Average common stockholders' equity           800,000   Determine the rate earned on stockholders’ equity. Round your answers as percentages to one decimal place. 43.8% .35% 40.0% 35.0%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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White’s Dagobah Swamp Care, LLC, reports the following.  Use the information to answer questions 32 and 33:

 

Net income

 

 $     350,000

Preferred dividends

 

           50,000

Average stockholders' equity

 

     1,000,000

Average common stockholders' equity

 

        800,000

 

Determine the rate earned on stockholders’ equity. Round your answers as percentages to one decimal place.

  1. 43.8%
  2. .35%
  3. 40.0%
  4. 35.0%
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