The Net Income of a Company for the Year Was

question 120

Multiple Choice

The net income of a company for the year was $600,000. The company has no preferred stock. Common stockholders' equity was $1,200,000 at the beginning of the year and $2,500,000 at the end of the year. Calculate the rate of return on common stockholders' equity. (Round your answer to two decimal places.)

• A) 24.00%
• B) 19.35%
• C) 50.00%
• D) 32.43%

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Definitions:

Openness

A personality trait that involves the appreciation for new experiences, curiosity, and openness to different ideas, values, and feelings.

Bilingual

The ability to speak and understand two languages fluently.

Bicultural Identity Formation

The process through which individuals who are exposed to two cultures develop a sense of identity that integrates aspects of both cultures.

Ethnocentric

Having the belief that one's own ethnic group or culture is superior to others.