The Average Stockholders' Equity for Holloway Co

question 110

Multiple Choice

The average stockholders' equity for Holloway Co.last year was $2,000,000.Included in this figure was $200,000 par value of 8% preferred stock.If the return on common stockholders' equity was 12.5% for the year, net income was

• A) $225,000.
• B) $250,000.
• C) $241,000.
• D) $234,000.