King Corporation Had Net Income of $260,000 and Paid Dividends

Multiple Choice

King Corporation had net income of $260,000 and paid dividends of $40,000 to common stockholders and $10,000 to preferred stockholders in 2018. King Corporation's common stockholders' equity at the beginning and end of 2018 was $870,000 and $1,130,000, respectively. There are 100,000 weighted-average shares of common stock outstanding. King Corporation's return on common stockholders' equity was

A) 18.6%.
B) 25%.
C) 21%.
D) 22.1%.