The Net Income of a Company for the Year Ended

question 44

Multiple Choice

The net income of a company for the year ended was $500,000. The company has no preferred stock. Common stockholders' equity was $1,000,000 at the beginning of the year and $2,000,000 at the end of the year. Calculate the return on common stockholders' equity.

• A)18.75%
• B)20.00%
• C)21.43%
• D)33.33%

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