A Company Had a Return on Common Stockholders' Equity of 22%.Net

question 51

Multiple Choice

A company had a return on common stockholders' equity of 22%.Net income equaled $600,000 and average common stockholders' equity equaled $2,500,000.Compute the amount of the preferred dividends declared.

• A)$50,000
• B)$550,000
• C)$132,000
• D)$10,763,636
• E)$10,000

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Definitions:

Initiating Structure

Organizing and defining relationships in the group by engaging in such activities as assigning specific tasks, specifying procedures to be followed, scheduling work, and making expectations clear

Precise Instructions

Clear and detailed directions provided to ensure a task is performed correctly and effectively.

Attaining Goal

Achieving a desired outcome or reaching a specific target through concerted effort and planning.

Energized Group

A team or collection of individuals infused with enthusiasm and vitality, often leading to increased productivity and creativity.