Holland Corporation's Annual Report Is as Follows Based on the Information Provided,find the Rate of Return on l

question 5

Multiple Choice

Holland Corporation's annual report is as follows. $$\begin{array} { | l | r | r | } \hline & \text { March 31, 2016 } & \text { March 31, 2017 } \\\hline \text { Net Income } & \$ 350,000 & \$ 441,500 \\\hline \text { Preferred Dividends } & 0 & 0 \\\hline \text { Total Stockholders' Equity } & \$ 4,380,000 & \$ 5,092,000 \\\hline \text { Stockholders' Equity attributable to Preferred } & & \\\text { Stock } & 0 &0 \\\hline \text { Number of Common Shares Outstanding } & 284,000 & 195,000\\\hline\end{array}$$ Based on the information provided,find the rate of return on common stockholders' equity on March 31,2017.(Round your final answer two decimal places. )

• A)8.36%
• B)9.32%
• C)8.67%
• D)7.99%

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Definitions:

Withdraw

To take money out of an account or to remove oneself from a particular situation.

Compounded Annually

A method of calculating interest where the interest for the year is added to the principal sum, thus interest in the next year is on the increased sum.

Loan Amount

The total sum of money borrowed in a loan, which the borrower agrees to pay back along with interest.

Quarterly

Occurring every three months or four times a year, often used in financial reporting or billing cycles.