Connors,Inc $\begin{array}{ll}\text { Net income } & \$ 180,000 \\\text { Market price per share of common stock } & \$ 20.00 / \text { share }\end{array}$

question 91

Essay

Connors,Inc.provides the following information for 2017:
$\begin{array}{ll}\text { Net income } & \$ 180,000 \\\text { Market price per share of common stock } & \$ 20.00 / \text { share }\end{array}$
$\begin{array}{ll}\text { Common stockholders' equity at Jan. } 1,2017 & \$ 1,100,000 \\\text { Common stockholders' equity at Dec. } 31,2017 & \$ 1,500,000 \\12 \% \text { preferred stock outstanding } & \$ 100,000\end{array}$
Calculate return on common stockholders' equity.(Round to two decimals. )

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Total Fixed Costs

The total of all expenses that stay the same no matter the amount of production or output.

Average Total Costs

The total cost of production (fixed and variable costs combined) divided by the number of units produced; it shows the cost per unit of output.

Variable Costs

Costs that change in proportion to the level of output in the production process.