The Following Information Pertains to Marsh Company What Is Marsh's Return on Common Stockholders' Equity?
A)15

question 22

Multiple Choice

The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures. $$\begin{array} { l r } \text { Total asset } & \$ 400,000 \\\text { Stockholders' equity-common } & 200,000 \\\text { Total stockholders' equity } & 280,000 \\\text { Sales } & 120,000 \\\text { Net income } & 30,000 \\\text { Number of shares of common stock } & 8,000 \\\text { Common dividends } & 6,000 \\\text { Preferred dividends } & 4,000\end{array}$$ What is Marsh's return on common stockholders' equity?

• A)15%.
• B)13.0%.
• C)10.0%.
• D)9.3%.

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Definitions:

Wealth

An abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.

Contribute

To give or provide something, often in the context of adding to a group effort or collective resource.

Benefit

The advantage or positive outcome gained from something.

Nash Equilibrium

A solution concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.