Wilson Corp. reported a net income of $245,000 in 2023 and paid dividends of $35,000 on common stock. It also paid dividends on its 15,000 shares of 5%, $100 par value, noncumulative preferred stock. Common stockholders' equity was $1,800,000 on January 1, 2023, and $2,200,000 on December 31, 2023. The company's return on common stockholders' equity for 2023 is: (a) 11.5% (b) 8.5% (c) 10.0% (d) 9.2%
Wilson Corp. reported a net income of $245,000 in 2023 and paid dividends of $35,000 on common stock. It also paid dividends on its 15,000 shares of 5%, $100 par value, noncumulative preferred stock. Common stockholders' equity was $1,800,000 on January 1, 2023, and $2,200,000 on December 31, 2023. The company's return on common stockholders' equity for 2023 is: (a) 11.5% (b) 8.5% (c) 10.0% (d) 9.2%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...
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General accounting

Transcribed Image Text:Wilson Corp. reported a net income of $245,000 in 2023 and paid dividends of $35,000 on
common stock. It also paid dividends on its 15,000 shares of 5%, $100 par value,
noncumulative preferred stock. Common stockholders' equity was $1,800,000 on January 1,
2023, and $2,200,000 on December 31, 2023. The company's return on common stockholders'
equity for 2023 is:
(a) 11.5%
(b) 8.5%
(c) 10.0%
(d) 9.2%
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