Clover Company's Net Income Last Year Was $80,000

question 1

Multiple Choice

Clover Company's net income last year was $80,000.The company paid preferred dividends of $12,000 and its average common stockholders' equity was $340,000.The company's return on common stockholders' equity for the year was closest to

• A) 27.1%.
• B) 3.5%.
• C) 20.0%.
• D) 23.5%.