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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