Question

he following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.Total assets $300,000Stockholders' equity—common 150,000Total stockholders' equity 200,000Sales revenue 100,000Net income 25,000Number of shares of common stock 6,000Common dividends 6,000MC: 199 (count)Preferred dividends 4,000What is the return on common stockholders' equity ratio for Benedict?a. 16.7%b. 14.0%c. 12.7%d. 10.5%

Answer 1

b. 14.0%

Step-by-step explanation:

NET INCOME

Sales $ 100.000

Net Income $ 25.000

Preferred Stock -$ 4.000

Net Income to Stockholders' equity—common $ 21.000 14%

Net Income to Stockholders $ 21.000

=========== = 14%

Stockholders' equity—common $ 150,000