Herman Corporation Had Net Income of $100,000 and Paid Dividends

question 114

Multiple Choice

Herman Corporation had net income of $100,000 and paid dividends of $25,000 to common stockholders and $20,000 to preferred stockholders in 2017. Herman Corporation's common stockholders' equity at the beginning and end of 2017s was $450,000 and $550,000, respectively. Herman Corporation's return on common stockholders' equity is

• A)20.0%.
• B)16.0%.
• C)15.0%.
• D)11.0%.

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Definitions:

Characteristics

Distinctive traits, qualities, or attributes that define or identify a person, object, or phenomenon.

Myocardial Infarction

A medical condition commonly known as a heart attack, resulting from the interruption of blood flow to a part of the heart, causing heart cells to die.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, leading to various health complications.

Industrialized Countries

Nations that are characterized by a significant level of industrialization, advanced technological infrastructure, and higher living standards.