A Company Had a Return on Common Stockholders' Equity of 25%.Net

question 124

Multiple Choice

A company had a return on common stockholders' equity of 25%.Net income equaled $200,000 and average common stockholders' equity equaled $700,000.Compute the amount of the preferred dividends declared.

• A)$200,000
• B)$500,000
• C)$50,000
• D)$25,000
• E)$175,000

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Definitions:

Unwritten Employment Contract

An implied agreement between an employer and employee that is not formally documented but is understood and accepted by both parties.

Downsizing

A corporate strategy involving the reduction of a company's workforce to improve efficiency or adapt to new market conditions.

Short-term Cost Adjustment

Immediate actions taken to modify expenses in response to financial pressures or budget constraints.

Exploration Work Shutdowns

A halt in exploratory activities, often in industries like mining or oil exploration, due to various reasons including financial constraints, environmental concerns, or strategic realignments.