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The Following Information Is Available for Richmond Hill Corporation Instructions
Based on the Preceding Information Calculate Return on Common

question 186

Essay

The following information is available for Richmond Hill Corporation:  Beginning common stockholders’ equity $700,000 Dividends paid to common stockholders 50,000 Dividends paid to preferred stockholders 30,000 Ending common stockholders’ equity 1,000,000 Net income 200,000\begin{array}{lr}\text { Beginning common stockholders' equity } & \$ 700,000 \\\text { Dividends paid to common stockholders } & 50,000 \\\text { Dividends paid to preferred stockholders } & 30,000 \\\text { Ending common stockholders' equity } & 1,000,000 \\\text { Net income } & 200,000\end{array}
Instructions
Based on the preceding information calculate return on common stockholders' equity.

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