What is the return on common stockholders, Ask an Expert

Accounting

Consider the following data for a corporation:

Net income $800,000
Preferred stock dividends $50,000
Market price per share of stock $25
Average common stockholders' equity $4,000,000
Cash dividends declared on common stock $20,000

What is the return on common stockholders' equity?

A. 19.50%

B. 21.25%

C. 18.75%

D. 20.00%

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9410762

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