Ferman Corporation Had Net Income of $160,000 and Paid Dividends

question 45

Multiple Choice

Ferman Corporation had net income of $160,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2014. Ferman Corporation's common stockholders' equity at the beginning and end of 2014 was $870,000 and $1,130,000, respectively. Ferman Corporation's return on common stockholders' equity was

• A) 16%.
• B) 14%.
• C) 11%.
• D) 9%.

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Definitions:

Irrational Beliefs

Irrational beliefs are convictions or assumptions that are not based on reality or logical reasoning, often leading to negative emotional outcomes and behaviors.

General Adaptation Syndrome (GAS)

Selye’s hypothetical three-stage response to stress.

Stressors

External or internal stimuli that cause stress, which can lead to physical, mental, or emotional strain or tension.

Approach-Avoidance Conflict

A psychological conflict that occurs when a goal is both appealing and deterring at the same time.