Partridge Inc $\begin{array}{llcc} \text {Net income } & \$180,000 \\ \text { Market price per share of common stock } &\$20.00/\text {share}\\\end{array}$

question 87

Essay

Partridge Inc. provides the following information for the year 2014:
$\begin{array}{llcc} \text {Net income } & \$180,000 \\ \text { Market price per share of common stock } &\$20.00/\text {share}\\\end{array}$

Common stockholders' equity at Jan. 1, 2014 $\quad$ $\quad$ $\quad$ $1,100,000 Common stockholders' equity at Dec. 31, 2014
$1,500,000
$12 \%$ preferred stock cutstanding $\quad$ $\quad$ $\quad$ $100,000
Calculate return on common stockholders' equity. (Round the percentage to two decimals)

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Definitions:

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Aggregate Supply

The total supply of goods and services available to an economy from producers at a given overall price level and at a given time period.

Hyperinflation

An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's value.

Deflation

A decrease in the general price level of goods and services, often characterized by the increase in the value of money.