A Company Had a Return on Common Stockholders' Equity of 25%.Net

question 124

Multiple Choice

A company had a return on common stockholders' equity of 25%.Net income equaled $200,000 and average common stockholders' equity equaled $700,000.Compute the amount of the preferred dividends declared.

• A)$200,000
• B)$500,000
• C)$50,000
• D)$25,000
• E)$175,000

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Definitions:

Organic Compound

Chemical compounds made primarily of carbon atoms in structures like chains or rings, often containing hydrogen and possibly oxygen, nitrogen, or other elements.

Absorptions

The process by which substances take in or soak up energy or material from their surroundings, often observed in spectroscopy.

IR Absorption

The process by which molecules absorb infrared light at frequencies characteristic of their structure, used in infrared spectroscopy.

Spike

A sharp increase or sudden upward movement, as in the context of graphs, prices, or signals.