Question: Assume that all balance sheet amounts represent average balance figures for a fiscal year. The company has not issued preferred stock. Total assets: $400,000 Common

Assume that all balance sheet amounts represent average balance figures for a fiscal year. The company has not issued preferred stock.
Total assets: $400,000
Common stock: $50,000
Additional Paid-in Capital: $150,000
Retained Earnings: $35,000
Sales: $120,000
Net income: $26,000
Shares of common stock outstanding: 8,000
Common dividends: $6,000
What is the return on common stockholders equity?
a.
7.5%
b.
12.0%.
c.
15.0%
d.
12.8%

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