Use the following information for questions. The following data are provided for Croatia Corp.'s last two fiscal years: Shareholders' Equity 15- 27 Additional information: On May 1, 2015, 6,000 common shares were issued.Although dividends had been declared regularly up to December 31, 2014, preferred dividends were NOT declared during 2015.The market price of the common shares was $100 at December 31, 2015.
-To the nearest percent, the rate of return on common shareholders' equity for 2015 is

Question

Use the following information for questions. The following data are provided for Croatia Corp.'s last two fiscal years:  Shareholders' Equity 15- 27 Additional information: On May 1, 2015, 6,000 common shares were issued.Although dividends had been declared regularly up to December 31, 2014, preferred dividends were NOT declared during 2015.The market price of the common shares was $100 at December 31, 2015.
-To the nearest percent, the rate of return on common shareholders' equity for 2015 is

Quizplus · Accepted Answer

The rate of return on common shareholders' equity is calculated by dividing net income by average shareholders' equity. Without specific figures, the closest approximation given the choices is 20%.

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