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:

Organizational Goals

Organizational Goals are the strategic objectives that a company aims to achieve, which guide its operations and decision-making processes.

Motivation

The internal or external forces that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Hiring Practices

The methods and procedures that employers use to recruit, select, and onboard new employees.

Formal Planning Processes

A structured approach organizations use to define their objectives, strategies, and actions to achieve their goals.