O'Connors, Inc. provides the following information for 2018:
$\begin{array}{lrr}
\text { Net income } &\$180,000\
\text { Market price per share of common stock } & \text { $ \$ 20.00 $ /share}\
\end{array}$
$\begin{array}{ll}
\text { Common stockholders' equity at Jan. } 1,2018 & \$ 1,100,000 \
\text { Common stockholders' equity at Dec. } 31,2018 & \$ 1,500,000 \
12 \% \text { preferred stock outstanding } & \$ 100,000
\end{array}$ Calculate the return on common stockholders' equity. (Round to two decimals.)

Question

O'Connors, Inc. provides the following information for 2018:
 $\begin{array}{lrr}
  \text { Net income } &\$180,000\
 \text { Market price per share of common stock } & \text {  $ \$ 20.00 $ /share}\
\end{array}$
 $\begin{array}{ll}
\text { Common stockholders' equity at Jan. } 1,2018 & \$ 1,100,000 \
\text { Common stockholders' equity at Dec. } 31,2018 & \$ 1,500,000 \
12 \% \text { preferred stock outstanding } & \$ 100,000
\end{array}$ Calculate the return on common stockholders' equity. (Round to two decimals.)

Quizplus · Accepted Answer

The Answer of O'Connors, Inc. provides the following information for 2018:
 $\begin{array}{lrr}
  \text { Net income } &\$180,000\
 \text { Market price per share of common stock } & \text {  $ \$ 20.00 $ /share}\
\end{array}$
 $\begin{array}{ll}
\text { Common stockholders' equity at Jan. } 1,2018 & \$ 1,100,000 \
\text { Common stockholders' equity at Dec. } 31,2018 & \$ 1,500,000 \
12 \% \text { preferred stock outstanding } & \$ 100,000
\end{array}$ Calculate the return on common stockholders' equity. (Round to two decimals.)

O'Connors, Inc Calculate the Return on Common Stockholders' Equity