The Moose Hardware Company Had Net Income of $60,000 and Owners

question 7

Short Answer

The Moose Hardware Company had net income of $60,000 and owners' equity of $316,090. Compute the rate of return on investment. Express your answer as a percentage. (Round answer to two decimal places.)

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Definitions:

Dividends Per Share

The amount of declared dividends for every share of common stock issued.

Common Stock

Common stock represents units of ownership in a public corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividend Distribution

The payment of earnings to shareholders, typically in cash or additional shares, approved by the company's board of directors.

Stockholders' Equity

The residual interest in the assets of a corporation remaining after deducting its liabilities, representing ownership equity spread among shareholders.