Crawler Company's Net Income Last Year Was $80,000

question 130

Multiple Choice

Crawler Company's net income last year was $80,000.The company paid dividends on preferred shares of $10,000,and its average common shareholders' equity was $400,000.The company's return on common shareholders' equity for the year was closest to which of the following?

• A) 2.5%.
• B) 17.5%.
• C) 20.0%.
• D) 22.5%.

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Definitions:

Electronegativity

A measure of an atom's ability to attract and hold electrons, influencing the bond type and polarity among atoms.

Electrons

Subatomic particles with a negative charge, found in all atoms and playing essential roles in electricity, chemistry, and bonding.

Compound

A substance made up of two or more different elements that are chemically bonded together.

Free Radicals

Highly reactive molecules with unpaired electrons, capable of causing cellular damage and contributing to disease processes.