The Net Income for the Year Ended Was $300,000

question 41

Multiple Choice

The net income for the year ended was $300,000. The company has no preferred stock. Common stockholders' equity was $1,400,000 at the beginning of the year and $1,600,000 at the end of the year. The return on common stockholders' equity would be:

• A) 18.75%.
• B) 20.00%.
• C) 21.43%.
• D) 87.50%.

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Definitions:

Random Variable

A random variable is a variable whose values depend on outcomes of a random phenomenon.

Manufacturer

An entity or company that makes goods for sale through the process of manufacturing.

Net Income

The amount of profit that remains after all operating expenses, taxes, and interest have been deducted from total revenue.

Random Variable

A variable that can take on different values randomly, subject to a certain probability distribution.