The Following Information Pertains to Ortiz Company What Is the Return on Common Stockholders' Equity for Ortiz

question 35

Multiple Choice

The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 270,000 \\\text { Total Assets }&\$360,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 220,000\\\text { Total Liabilities and Stockholders' Equity }&\$360,000\\\\\end{array}$ $\begin{array}{lr}\text { Income Statement }\\\text { Sales } & \$ 150,000 \\\text { Cost of goods sold } & 66,000\\\text { Gross profit } & 84,000 \\\text { Operating expenses } & 29,000\\\text { Net income }&\$55,000\\\\\text { Number of shares of common stock }&6,000 \\\text { Market price of common stock } &\$20\\\text { Dividends per share }&.50\end{array}$ What is the return on common stockholders' equity for Ortiz?

• A)25%
• B)50%
• C)12.5%
• D)15.3%

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Definitions:

Hypothalamus

A region of the brain that regulates bodily functions including temperature, hunger, and thirst.

Thalamus

The brain's main relay station, channeling sensory and motor signals to and from the cerebral cortex.

Temporal Lobe

An area of the cerebral cortex that plays a role in analyzing sound information and forming memories.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.