Question

Holland Corporation's annual report is as follows.

March 31, 2017

March 31, 2018

- Net Income : March 31, 2017 = $364,000, March 31, 2018 = $442,500
- Preferred Dividends : March 31, 2017 = 0, March 31, 2018 = 0
- Total Stockholders' Equity : March 31, 2017 = $4,360,000, March 31, 2018 = $5,132,000
- Stockholders' Equity attributable to Preferred Stock : March 31, 2017 = 0, March 31, 2018 = 0
- Number of Common Shares Outstanding : March 31, 2017 = 294,000, March 31, 2018 = 199,000

Based on the information provided, find the rate of return on common stockholders' equity on March 31, 2018. (Round your final answer two decimal places.)
A. 9.32%
В. 8.35%
С. 8.62%
D. 8.5%

Answer 1

The question pertains to interpreting certain financial and statistical figures in Holland Corporation's annual report, likely related to percentages of corporate profits, employment statistics, and tax contributions in relation to GDP.

Step-by-step explanation:

The student's question seems to be related to interpreting Holland Corporation's annual report, specifically percentages that pertain to different financial metrics or corporate statistics. When looking at reports like this, it's important to understand what each figure represents, as percentages can relate to profit margins, market share, the portion of employment, or taxes as a percentage of GDP, among other things. It's beneficial to compare these figures against industry standards, historical data, or benchmarks to assess the company's performance accurately.

For instance, the reference to corporate profits increasing each year except between 2008 and 2009 ties to economic conditions like the financial crisis during that period, which had widespread impact. Additionally, the revenue from the corporate income tax that fell from 5-6 percent to 1.3 percent of GDP signifies changes in fiscal policy or corporate tax law that might have influenced business operations and government revenue.