A Company Has $510,000 in Average Common Stockholders' Equity, Net

question 32

Multiple Choice

A company has $510,000 in Average common stockholders' equity, Net income of $312,000, and Preferred dividends paid of $15,000. What is the rate of return on common stockholders' equity?

• A) 58.2%
• B) 61.2%
• C) 59.3%
• D) 62.0%

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Definitions:

Declarative Long-Term Memories

Declarative long-term memories are memories that can be consciously recalled, such as facts and events.

Procedural Memory

A type of long-term memory for how to perform different actions and skills.

Serial-Position Effect

A psychological phenomenon where people tend to remember the first and last items in a series better than the middle items.

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories.