The Following Information Pertains to Benedict Company What Is the Return on Common Stockholders' Equity Ratio for Sheet

question 58

Multiple Choice

The following information pertains to Benedict Company.Assume that all balance sheet amounts represent average balance figures. $$\begin{array} { l r } \text { Total assets } & \$ 300,000 \\\text { Stockholders' equity-common } & 150,000 \\\text { Total stockholders' equity } & 200,000 \\\text { Sales revenue } & 100,000 \\\text { Net income } & 25,000 \\\text { Number of shares of common stock } & 6,000 \\\text { Common dividends } & 5,000 \\\text { Preferred dividends } & 7,000\end{array}$$ What is the return on common stockholders' equity ratio for Benedict?

• A)16.7%
• B)12.0%
• C)13.3%
• D)9.0%

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Definitions:

Psychological Hardiness

Refers to a personality characteristic that involves a sense of control, commitment, and embracing challenge as a means of personal growth, which helps individuals to manage stress more effectively.

Stress

The body's response to any demand or challenge, which can be triggered by both positive and negative experiences.

Denial

A psychological defense mechanism involving refusal to accept reality or facts, thus avoiding a painful or uncomfortable truth.

Projection

A defense mechanism where an individual ascribes their own unwanted thoughts, feelings, or motivations to someone else.