The Following Is from Nantucket Limited's Records for 2017 During 2017, the Company Paid Dividends of $15,000 on Its

question 95

Multiple Choice

The following is from Nantucket Limited's records for 2017: $\begin{array}{lr}\text { ACCOUNT BALANCES}&\text { JANUARY } 1&\text { DECEMBER } 31\\\text { COMMON STOCK }&\$210,000&\$250,000\\\text { ADDITIONAL PAID-IN-CAPITAL }&95,000&110,000\\\text { RETAINED EARNINGS }&105,000&195,000\end{array}$
During 2017, the company paid dividends of $15,000 on its common stock.The company's net income for the year was $105,000.How much is the company's return on common stockholders' equity for the year ending December 31, 2017?

• A)18.9%
• B)16.2%
• C)22.0%
• D)25.6%

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Definitions:

Increases In Value

A financial term indicating an asset's worth grows over time due to various factors like market demand.

Declines

Decreases in value, performance, or level over a period of time.

Capital Gain Yield

The price appreciation component of the total return on an investment, excluding any dividends or interest earned.

Income Yield

The income generated by an investment, usually expressed as a percentage of the investment's cost.