Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear

question 96

Multiple Choice

Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The return on common stockholders' equity for Year 2 is closest to:

• A)11.33%
• B)10.00%
• C)10.67%
• D)9.41%

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Definitions:

Flexible Budget

A flexible budget adjusts costs and revenue levels according to varying activity levels, providing a more accurate performance assessment than a static budget.

Homeless

Individuals or families lacking a fixed, regular, and adequate nighttime residence.

Cost Formulas

Mathematical equations or models used to calculate the total cost of producing goods or services based on variable and fixed costs.

Activity Variances

Differences between planned activity levels and actual activity levels, used to measure the efficiency and performance of different business operations.