The Following Financial Statement Information Is Available for Penn Corporation

question 11

Multiple Choice

The following financial statement information is available for Penn Corporation: $\begin{array}{lrr}&2020&2019\\\text { Stockholders' equity - common } & \$ 350,000 & \$ 270,000 \\\text { Net sales } & 784,000 & 697,000 \\\text { Cost of goods sold } & 406,000 & 377,000 \\\text { Net income } & 115,000 & 80,000 \\\text { Inc tax expense } & 48,000 & 29,000 \\\text { Interest expense } & 14,000 & 14,000 \\\text { Dividends paid to preferred } & &\\\text { stockholders } & 24,000 & 20,000 \\\text { Dividends paid to common } & & \\\text { stockholders } & 15,000 & 10,000\end{array}$ The return on common stockholders' equity for 2020 is

• A) 21.7%.
• B) 32.9%.
• C) 28.6%.
• D) 29.4%.

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