Duncan Company's ROE Was 8% for 2014 What Was Duncan Company's Net Income for 2014?
A)$260,000
B)$280,000

question 95

Multiple Choice

Duncan Company's ROE was 8% for 2014.The average balances in their shareholders' equity accounts were as follows: $\begin{array}{lr}\text { Common stock, unlimited authorized, } 50,000 \text { outstanding } & \$ 1,000,000 \\\$ 2 \text { Preferred stock, 20,000 authorized, 10,000 outstanding } & \$ 350,000\\\text { Retained earnings }&\$2,250,000\end{array}$ What was Duncan Company's net income for 2014?

• A)$260,000
• B)$280,000
• C)$288,000
• D)$308,000
• \(\begin{array}{lrr}
• & \text { Common } & \text { Preferred } \\
• \text { Average shareholders' equity } & \$ 10,500,000 & \$ 1,200,000 \\
• \text { Average number of shares outstanding } & 1,000,000 & 300,000 \\
• \text { Dividends declared and paid } & \$ 500,000 & \$ 900,000\\
• \text { Current price per share }&\$32&\$48\\
• \text { Net Income }&\$3,400,000
• \end{array}\)

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Definitions:

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major energy source in the diet of humans and animals.

Worst Predictor

A variable in a statistical model that contributes least to the prediction of the outcome variable, often due to lack of significant correlation or variability.

SE Coef

The Standard Error of the Coefficient (SE Coef) measures the accuracy with which a sample represents a population, specifically showing how much the estimated coefficients of a regression analysis are likely to vary from the actual population values.

Linear Effects

Phenomena or changes that are directly proportional to the changes in an independent variable, showing a straight-line relationship in graphical representations.