A company reports the following: $$\begin{array} { | l | c | }
\hline \text { Net income } & \$ 350,000 \
\hline \text { Preferred dividends } & 50,000 \
\hline \text { Average stockholders' equity } & 1,000,000 \
\hline \text { Average common stockholders' equity } & 800,000 \
\hline
\end{array}$$ Determine the a) rate earned on stockholders' equity, and b) rate earned on common stockholders' equity. Round
to one decimal place.

Question

A company reports the following: $$\begin{array} { | l | c | } 
\hline \text { Net income } & \$ 350,000 \
\hline \text { Preferred dividends } & 50,000 \
\hline \text { Average stockholders' equity } & 1,000,000 \
\hline \text { Average common stockholders' equity } & 800,000 \
\hline
\end{array}$$ Determine the a) rate earned on stockholders' equity, and b) rate earned on common stockholders' equity. Round
to one decimal place.

Quizplus · Accepted Answer

The Answer of A company reports the following: $$\begin{array} { | l | c | } 
\hline \text { Net income } & \$ 350,000 \
\hline \text { Preferred dividends } & 50,000 \
\hline \text { Average stockholders' equity } & 1,000,000 \
\hline \text { Average common stockholders' equity } & 800,000 \
\hline
\end{array}$$ Determine the a) rate earned on stockholders' equity, and b) rate earned on common stockholders' equity. Round
to one decimal place.

A Company Reports the Following Determine the A) Rate Earned on Stockholders' Equity, and B)