Reed Company reports the following information for the year 2013:
$$\begin{array} { | l | r | }
\hline \text { Net income } & \$ 46,000 \
\hline \text { Preferred dividends } & 12,000 \
\hline \text { Common equity, Jan 1 } & 800,000 \
\hline \text { Common equity, Dec 31 } & 900,000 \
\hline
\end{array}$$
Please calculate the rate of return on common stockholders' equity. Please round to 3 decimal places.

Question

Reed Company reports the following information for the year 2013:
$$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 46,000 \
\hline \text { Preferred dividends } & 12,000 \
\hline \text { Common equity, Jan 1 } & 800,000 \
\hline \text { Common equity, Dec 31 } & 900,000 \
\hline
\end{array}$$
Please calculate the rate of return on common stockholders' equity. Please round to 3 decimal places.

Quizplus · Accepted Answer

The Answer of Reed Company reports the following information for the year 2013:
$$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 46,000 \
\hline \text { Preferred dividends } & 12,000 \
\hline \text { Common equity, Jan 1 } & 800,000 \
\hline \text { Common equity, Dec 31 } & 900,000 \
\hline
\end{array}$$
Please calculate the rate of return on common stockholders' equity. Please round to 3 decimal places.

Reed Company Reports the Following Information for the Year 2013