Abigail Company Reports the Following ​
Determine the (A) Return on Stockholders' Equity, and (B)

question 120

Essay

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

---

Definitions:

Automatic Processes

Automatic processes are mental activities that occur without conscious effort or awareness, typically allowing people to perform tasks quickly and efficiently.

Self-Regulation

The ability to monitor and control one's own behaviors, emotions, or thoughts, aligning them with long-term goals.

Incremental Theorist

An individual who believes that abilities and intelligence can grow and change through effort and education.

Entity Theorist

Entity Theorist believes that personal qualities such as intelligence or talent are fixed and unchangeable traits, influencing how individuals approach challenges and learning opportunities.