Gomez Company Reports the Following Amounts for 2014 The 2014 Rate of Return on Ordinary Shareholders' Equity Is

question 232

Multiple Choice

Gomez Company reports the following amounts for 2014: $$\begin{array} { l r } \text { Net income } & \$ 150,000 \\\text { Average shareholders' equity } & 2,600,000 \\\text { Preference dividends } & 48,000 \\\text { Parvalue preference shares } & 200,000\end{array}$$ The 2014 rate of return on ordinary shareholders' equity is

• A) 5.1%.
• B) 5.7%.
• C) 7.5%.
• D) 8.3%.