White’s Dagobah Swamp Care, LLC, reports the following.  Use the information to answer questions:   Net income    $     350,000 Preferred dividends              50,000 Average stockholders' equity        1,000,000 Average common stockholders' equity           800,000   Determine the rate earned on common stockholders’ equity. Round your answers as percentages to one decimal place. 37.5% 35.0% .375% 40.0%

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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White’s Dagobah Swamp Care, LLC, reports the following.  Use the information to answer questions:

 

Net income

 

 $     350,000

Preferred dividends

 

           50,000

Average stockholders' equity

 

     1,000,000

Average common stockholders' equity

 

        800,000

 

Determine the rate earned on common stockholders’ equity. Round your answers as percentages to one decimal place.

  1. 37.5%
  2. 35.0%
  3. .375%
  4. 40.0%
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