Dan sells newspapers. Dan says that a 8 percent increase in the price of a newspaper will decrease the quantity of newspapers de
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Answer:
Return on common stockholders' equity=0.0933=9.33 %
Explanation:
Net Income=$200,000
Preferred Stockholder Dividends=Number of shares* value per share*interest
Preferred Stockholder Dividends=10000*$100*6%
Preferred Stockholder Dividends=10000*$100*0.06
Preferred Stockholder Dividends=$60,000
Average Common stockholders' equity= (Equity at start of year+Equity at end of year)/2
Average Common stockholders' equity=
Average Common stockholders' equity=$1,500,000
Return on common stockholders' equity=(Net Income-Preferred Stockholder Dividends)/Average Common stockholders' equity
Return on common stockholders' equity=
Return on common stockholders' equity=0.0933=9.33 %