Crandler Company's net income last year was $60,000.The company paid preferred dividends of $20,000 and its average common stockholders' equity was $500,000.The company's return on common stockholders' equity for the year was closest to:

Question

Quizplus · Accepted Answer

Return on common stockholders' equity
= (Net income - Preferred dividends)F1F1F1S1F1F1F10 Average common stockholders' equity
= ($60,000 - $20,000)F1F1F1S1F1F1F10 $500,000 = 8.0%

Crandler Company's Net Income Last Year Was $60,000