Lang Inc Reported Net Income of €235,000 During 2014 and Paid

Multiple Choice

Lang Inc. reported net income of €235,000 during 2014 and paid dividends of €26,000 on ordinary shares. It also has 10,000 shares of 6%, €100 par value preference share outstanding. Ordinary shareholders' equity was €1,200,000 on January 1, 2014, and €1,600,000 on December 31, 2014. The company's return on ordinary shareholders' equity for 2014 is:

A) 14.9%
B) 12.5%
C) 10.6%
D) 16.8%