Herman Corporation Had Net Income of $100,000 and Paid Dividends

question 63

Multiple Choice

Herman Corporation had net income of $100,000 and paid dividends of $25,000 to common stockholders and $20,000 to preferred stockholders in 2020.Herman Corporation's common stockholders' equity at the beginning and end of 2020 was $450,000 and $550,000, respectively.Herman Corporation's return on common stockholders' equity is

• A)20.0%.
• B)16.0%.
• C)15.0%.
• D)11.0%.

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Definitions:

Global Inequality

The unequal distribution of resources, wealth, and opportunities across different countries and populations worldwide.

Rigid Hierarchy

A strictly enforced system where positions and roles are clearly ranked, often with little flexibility for movement between levels.

Global Inequality

The unequal distribution of resources and opportunities between countries or regions around the world, often measured by income, wealth, or access to services.

International Differences

The variations or disparities between countries and cultures, covering aspects such as legal systems, social norms, economic policies, and cultural practices.