Barber Industries Reported Net Sales of $92,000, Net Income of $32,000

question 33

Multiple Choice

Barber Industries reported net sales of $92,000, net income of $32,000, dividends paid to preferred stockholders of $7,000, dividends paid to common stockholders of $10,000, average number of shares outstanding is 5,000 and average common stockholders' equity of $96,000.What is the return on common stockholders' equity?

• A)26.0%
• B)33.3%
• C)88.5%
• D)95.8%

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Definitions:

Predicted Y

In statistical modeling, Predicted Y represents the value forecasted by a regression model when specific values are inputted for the model's predictors.

Residuals

Residuals are the differences between observed values and the expected values predicted by a model, representing unexplained variance.

Subtract

The mathematical process of deducting one number from another.

Correlated

Implies a statistical relationship where two variables move together in some predictable pattern.