Abigail Company Reports the Following Determine the a Rate Earned on Stockholders' Equity,and B Rate

question 163

Essay

Abigail Company reports the following:
$\begin{array}{|l|r|}\hline\text { Net income } & \$ 295,000 \\\hline \text { Preferred dividends } & 30,000 \\\hline \text { Average stockholders' equity } & 1,000,000 \\\hline \text { Average common stockholders' equity } & 700,000 \\\hline\end{array}$ Determine the a rate earned on stockholders' equity,and b rate earned on common stockholders' equity.Round your answer to one decimal place.

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Definitions:

Outer Boundary

The external limit or edge of a structure or area.

ATP Synthesis

The biochemical process of producing adenosine triphosphate (ATP), which is the primary energy carrier in cells, occurring in both the mitochondria during cellular respiration and chloroplasts during photosynthesis.

Contains DNA

Refers to cells or structures within organisms that hold the genetic material deoxyribonucleic acid.

Equator

The imaginary line that divides the Earth into northern and southern hemispheres.