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

question 89

Essay

A company reports the following: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 350,000 \\\hline \text { Preferred dividends } & 50,000 \\\hline \text { Average stockhol ders' equity } & 1,000,000 \\\hline \text { Average common stockholders' equity } & 800,000 \\\hline\end{array}$$ ​
Determine the (a) return on stockholders' equity, and (b) return on common stockholders' equity. Round your answer to one decimal place.

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Definitions:

Foot-in-the-door Technique

A persuasion strategy by which agreeing to a small request increases the likelihood of agreeing to a second, larger request.

Pique Technique

A persuasion technique that aims to capture one's attention by making an unusual request or statement.

Need for Cognition

The motivation to engage and enjoy thinking deeply about information and problems.

Strong Arguments

Persuasive arguments that are logical, well-supported, and convincing.