Ferman Corporation had net income of $140,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2020.Ferman Corporation's common stockholders' equity at the beginning and end of 2020 was $870,000 and $1,130,000, respectively.Ferman Corporation's return on common stockholders' equity was
A)14%.
B)12%.
C)9%.
D)8%.

Question

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The Answer of Ferman Corporation had net income of $140,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2020.Ferman Corporation's common stockholders' equity at the beginning and end of 2020 was $870,000 and $1,130,000, respectively.Ferman Corporation's return on common stockholders' equity was
A)14%.
B)12%.
C)9%.
D)8%.

Ferman Corporation Had Net Income of $140,000 and Paid Dividends