A company paid cash dividends on its preference shares of $40,000 in the current year when its net income was $120,000 and its average ordinary shareholders' equity was $640,000. What is the company's return on ordinary shareholders' equity?

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The Answer of A company paid cash dividends on its preference shares of $40,000 in the current year when its net income was $120,000 and its average ordinary shareholders' equity was $640,000. What is the company's return on ordinary shareholders' equity?

A Company Paid Cash Dividends on Its Preference Shares of $40,000