Barber Industries Reported Net Sales of $92,000,net Income of $32,000,dividends

question 145

Multiple Choice

Barber Industries reported net sales of $92,000,net income of $32,000,dividends paid to preferred stockholders of $7,000,dividends paid to common stockholders of $10,000,average number of shares outstanding is 5,000 and average common stockholders' equity of $96,000.What is the return on common stockholders' equity?

• A) 26.0%
• B) 33.3%
• C) 88.5%
• D) 95.8%

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Definitions:

Common Biases

Prejudices or tendencies that influence judgment and decision-making in a non-objective way.

Impressions

The initial thoughts, feelings, or perceptions one forms about another person or entity based on limited information.

Attributing

The process of explaining the cause of behaviors or events, often associating them with particular factors or motives.

Halo Effect

The rating of an individual on one trait or characteristic tends to colour ratings on other traits or characteristics.