Reed Company Reports the Following Information for the Year 2013

question 93

Multiple Choice

Reed Company reports the following information for the year 2013:
$$\begin{array} { | l | r | } \hline \text { Net income } & \$ 46,000 \\\hline \text { Preferred dividends } & 12,000 \\\hline \text { Common equity, Jan 1 } & 800,000 \\\hline \text { Common equity, Dec 31 } & 900,000 \\\hline\end{array}$$
Please calculate the rate of return on common stockholders' equity. Please round to 3 decimal places.

• A) 0.054
• B) 0.040
• C) 0.043
• D) 0.014

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Definitions:

Contingency Management

Contingency Management is a behavioral therapy technique that rewards positive behaviors and discourages negative ones through reinforcement.

Behavioral Component

Aspects of therapy that focus on changing observable and measurable behaviors as a means to improve mental health.

Rational-emotive Theory

This theory, developed by Albert Ellis, emphasizes the role of rational thinking in the development of emotional and behavioral issues and aims to change irrational beliefs.

Irrational Beliefs

Faulty, unrealistic thought patterns that often lead to negative emotional outcomes and behaviors.