Settles Corporation Has Provided the Following Financial Data: Dividends

question 318

Multiple Choice

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.The company's return on equity for Year 2 is closest to:

• A) 3.31%
• B) 8.50%
• C) 5.09%
• D) 50.52%

---

Definitions:

Income

The financial gain (earned or unearned) accruing over a given period of time.

Utility Functions

Mathematical expressions used in economics to represent a consumer's preference ranking for various bundles of goods.

Consumption

The utilization of goods and services by households or individuals to satisfy their needs and wants.

Grain

The small, hard seeds of cereal plants like wheat, rice, and corn, used as a primary source of food for humans and animals.