Herman Corporation Had Net Income of $120,000 and Paid Dividends

question 123

Multiple Choice

Herman Corporation had net income of $120,000 and paid dividends of $24,000 to common stockholders and $20,000 to preferred stockholders in 2014. Herman Corporation's common stockholders' equity at the beginning and end of 2014s was $450,000 and $550,000, respectively. Herman Corporation's return on common stockholders' equity is

• A) 24.0%.
• B) 20.0%.
• C) 19.2%.
• D) 15.2%.

---

Definitions:

Official Guidelines

Official guidelines refer to established rules or authoritative advice issued by a relevant body or organization, often within a specific industry or professional field, to standardize practices and ensure compliance with legal and ethical standards.

Double Billing

Sending a claim for the second time to the same insurance company, for the same procedure or service, provided to the same patient on the same date of service.

Health Care Fraud And Abuse Control Program

A U.S. government program aimed at detecting and preventing fraud and abuse in health care services and billing.

Objective

Something that one's efforts or actions are intended to attain or accomplish; a purpose or goal.