Herman Corporation Had Net Income of $100000 and Paid Dividends

question 49

Multiple Choice

Herman Corporation had net income of $100000 and paid dividends of $25000 to common stockholders and $20000 to preferred stockholders in 2021.Herman Corporation's common stockholders' equity at the beginning and end of 2021 was $450000 and $550000 respectively.Herman Corporation's return on common stockholders' equity is

• A)20.0%.
• B)16.0%.
• C)15.0%.
• D)11.0%.

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Definitions:

Motivate

The process of stimulating interest or enthusiasm for doing something, often leading to increased effort and goal-directed behavior.

Monetary Bonus

A financial reward given to an employee beyond their regular salary or wages.

Self-Transcendence

A state or action of going beyond one's own interests, concerns, or personal experiences, often associated with spiritual or altruistic experiences.

Self-Actualization

Materializing or achieving one's natural capabilities and potential, seen as a fundamental drive or essential requirement in everyone.