Holland Corporation's annual report is as follows. $$\begin{array} { | l | r | r | }
\hline & \text { March 31, 2016 } & \text { March 31, 2017 } \
\hline \text { Net Income } & \$ 350,000 & \$ 441,500 \
\hline \text { Preferred Dividends } & 0 & 0 \
\hline \text { Total Stockholders' Equity } & \$ 4,380,000 & \$ 5,092,000 \
\hline \text { Stockholders' Equity attributable to Preferred } & & \
\text { Stock } & 0 &0 \
\hline \text { Number of Common Shares Outstanding } & 284,000 & 195,000\
\hline
\end{array}$$ Based on the information provided,find the rate of return on common stockholders' equity on March 31,2017.(Round your final answer two decimal places. )

Question

Holland Corporation's annual report is as follows. $$\begin{array} { | l | r | r | } 
\hline & \text { March 31, 2016 } & \text { March 31, 2017 } \
\hline \text { Net Income } & \$ 350,000 & \$ 441,500 \
\hline \text { Preferred Dividends } & 0 & 0 \
\hline \text { Total Stockholders' Equity } & \$ 4,380,000 & \$ 5,092,000 \
\hline \text { Stockholders' Equity attributable to Preferred } & & \
\text { Stock } & 0 &0 \
\hline \text { Number of Common Shares Outstanding } & 284,000 &  195,000\
\hline
\end{array}$$ Based on the information provided,find the rate of return on common stockholders' equity on March 31,2017.(Round your final answer two decimal places. )

Quizplus · Accepted Answer

The rate of return on common stockholders' equity is calculated as (Net Income - Preferred Dividends) / Average Common Stockholders' Equity. For 2017, it is ($441,500 - $0) / [($4,380,000 + $5,092,000) / 2] = 9.32%.

Holland Corporation's Annual Report Is as Follows Based on the Information Provided,find the Rate of Return on l