Kong IncReported Net Income of $298,000 During 2021 and Paid Dividends

question 206

Multiple Choice

Kong Inc.reported net income of $298,000 during 2021 and paid dividends of $26,000 on common stock.It also has 10,000 shares of 6%, $100 par value cumulative preferred stock outstanding.Common stockholders' equity was $1,200,000 on January 1, 2021, and $1,600,000 on December 31, 2021.The company's return on common stockholders' equity for 2021 is:

• A)17.4%
• B)17.0%
• C)15.1%
• D)21.3%

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Definitions:

Material Progress

The advancement and accumulation of physical goods, technological advancements, and improved living standards within a society.

Business Consolidation

The process of combining two or more companies into a single entity, often to increase efficiency and reduce competition.

Trustbusting

Government activities aimed at breaking up monopolies and trusts (large business entities) to foster competition and prevent market domination, prominently associated with the early 20th century.

Upton Sinclair

An American writer and social activist known for his novel "The Jungle," which exposed labor and sanitary conditions in the U.S. meatpacking industry, contributing to the passage of federal food safety laws.