Armstrong Limited had the following account balances in 2013 and 2014: $$\begin{array} { l r r }
& \underline { 2014 } & \underline { 2013 } \
\text { Common stock } & \$ 500,000 & \$ 400,000 \
\text { Preferred stock } & \$ 250,000 & \$ 250,000 \
\text { Retained earnings } & \$ 1,000,000 & \$ 925,000 \
\text { Net Income } & \$ 100,000 & \$ 85,000 \
\text { Common dividends } & \$ 10,000 & \$ 8,000 \
\text { Preferred dividends } & \$ 15,000 & \$ 15,000
\end{array}$$ What was Armstrong Limited's ROE for 2014?

Question

Armstrong Limited had the following account balances in 2013 and 2014: $$\begin{array} { l r r } 
& \underline { 2014 } & \underline { 2013 } \
\text { Common stock } & \$ 500,000 & \$ 400,000 \
\text { Preferred stock } & \$ 250,000 & \$ 250,000 \
\text { Retained earnings } & \$ 1,000,000 & \$ 925,000 \
\text { Net Income } & \$ 100,000 & \$ 85,000 \
\text { Common dividends } & \$ 10,000 & \$ 8,000 \
\text { Preferred dividends } & \$ 15,000 & \$ 15,000
\end{array}$$ What was Armstrong Limited's ROE for 2014?

Quizplus · Accepted Answer

The Answer of Armstrong Limited had the following account balances in 2013 and 2014: $$\begin{array} { l r r } 
& \underline { 2014 } & \underline { 2013 } \
\text { Common stock } & \$ 500,000 & \$ 400,000 \
\text { Preferred stock } & \$ 250,000 & \$ 250,000 \
\text { Retained earnings } & \$ 1,000,000 & \$ 925,000 \
\text { Net Income } & \$ 100,000 & \$ 85,000 \
\text { Common dividends } & \$ 10,000 & \$ 8,000 \
\text { Preferred dividends } & \$ 15,000 & \$ 15,000
\end{array}$$ What was Armstrong Limited's ROE for 2014?

Armstrong Limited Had the Following Account Balances in 2013 and 2014