Final answer:
The question asks for the return on common equity (ROE), but the necessary information, common stockholders' equity, is not provided. Assuming total assets are common stockholders' equity and ignoring liabilities or preferred stocks, ROE would be approximately 11.41%.
Step-by-step explanation:
The question relates to calculating the return on common equity (ROE), which is a measure of the profitability of a company relative to the equity held by common shareholders. The formula for ROE is net income divided by common stockholders' equity. In this case, you've provided the net income but not the common stockholders' equity. Common stockholders' equity is typically total assets minus total liabilities, minus preferred equity (if any). Without this information, we cannot calculate the ROE.
However, based on the information given for a hypothetical scenario where the net income available to stockholders is $1,250 and the total common stockholders' equity were given, the ROE would be calculated as ($1,250 / equity amount). If the total assets of $10,960 are assumed to be the common stockholders' equity (which would only be true if the company had no liabilities or preferred stock), the ROE would be ($1,250 / $10,960) which is approximately 11.41%.