Ferman Corporation Had Net Income of $140000 and Paid Dividends

question 241

Multiple Choice

Ferman Corporation had net income of $140000 and paid dividends of $40000 to common stockholders and $20000 to preferred stockholders in 2021.Ferman Corporation's common stockholders' equity at the beginning and end of 2021 was $870000 and $1130000 respectively.Ferman Corporation's return on common stockholders' equity was

• A)14%.
• B)12%.
• C)9%.
• D)8%.

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Definitions:

Stock Market Behavior

The way in which stock markets operate and fluctuate, influenced by economic data, company performance, and investor sentiment.

Wave Cycles

A theory or model suggesting that financial markets follow predictable, wave-like patterns of growth and decline over time.

Technical Analysis

The study of past market data, including price and volume, to forecast future market behavior.

Trends

The general direction in which something is developing or changing, often used in the context of financial markets to describe price movements.