Goslier Company's net income last year was $130,000.The company paid preferred dividends of $42,000 and its average common stockholders' equity was $610,000.The company's return on common stockholders' equity for the year was closest to

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The return on common stockholders' equity is calculated by subtracting preferred dividends from net income and then dividing by average common stockholders' equity. So, ($130,000 - $42,000) / $610,000 = $88,000 / $610,000 = 0.144 or 14.4%.

Goslier Company's Net Income Last Year Was $130,000