Goslier Company's Net Income Last Year Was $130,000

question 116

Multiple Choice

Goslier Company's net income last year was $130,000.The company paid preferred dividends of $42,000 and its average common stockholders' equity was $610,000.The company's return on common stockholders' equity for the year was closest to

• A) 15.8%.
• B) 28.1%.
• C) 21.3%.
• D) 14.4%.

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Definitions:

English Economist

An English Economist refers to an economist from England who specializes in the study of economics, the social science concerned with the production, distribution, and consumption of goods and services.

Utility Theory

A theory in economics that assesses the usefulness or satisfaction a consumer gains from consuming goods and services.

Total Utility

The complete fulfillment experienced from the consumption of a specific amount of products or services.

Marginal Utility

The increased happiness or value a buyer experiences by consuming an extra unit of a good or service.