A company reports the following: Net income ............$ 375,000 Preferred dividends......... 75,000 Average stockholders equity..... 2,500,000 Average

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A company reports the following:

Net income ............$ 375,000

Preferred dividends......... 75,000

Average stockholders’ equity..... 2,500,000

Average common stockholders’ equity .. 1,875,000

Determine

(a) The rate earned on stockholders’ equity.

(b) The rate earned on common stockholders’ equity. Round to one decimal place.


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Related Book For  book-img-for-question

Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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