Selected information for Brain Corporation is as follows:                                                                       December 31                                                                         2011      2012  Preference stock                                         180,000  P 180,000 Common stock                                            648,000     840,000  Retained earnings                                      192,000     360,000                       Net incomefor the year ended                  144,000     240,000 What is Brain's rate of return on average stockholders' equity for 2012? a. 16.0% b. 20.0% c. 23.5% d. 26.0%

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.13E
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Selected information for Brain Corporation is as follows:
                                                                      December 31
                                                                        2011      2012
 Preference stock                                         180,000  P 180,000
Common stock                                            648,000     840,000
 Retained earnings                                      192,000     360,000                       Net incomefor the year ended                  144,000     240,000

What is Brain's rate of return on average stockholders' equity for 2012?
a. 16.0%
b. 20.0%
c. 23.5%
d. 26.0% 

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