Lang Inc Reported Net Income of €235,000 During 2014 and Paid

question 19

Multiple Choice

Lang Inc. reported net income of €235,000 during 2014 and paid dividends of €26,000 on ordinary shares. It also has 10,000 shares of 6%, €100 par value preference share outstanding. Ordinary shareholders' equity was €1,200,000 on January 1, 2014, and €1,600,000 on December 31, 2014. The company's return on ordinary shareholders' equity for 2014 is:

• A) 14.9%
• B) 12.5%
• C) 10.6%
• D) 16.8%

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Definitions:

Explosives

A rephrased definition: Chemical compounds or mixtures that release a large amount of energy in a very short time through blasts or combustion.

Carbon Dioxide

A colorless, odorless gas with the formula CO2, produced by burning carbon and organic compounds and by respiration.

Organic Material

Matter obtained from living organisms, typically consisting of compounds like carbohydrates, proteins, lipids, and nucleic acids.

Blast Wave

A high-energy shock wave resulting from an explosion, characterized by an abrupt increase in pressure and velocity of the surrounding medium.