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Herman Corporation Had Net Income of $100,000 and Paid Dividends

Question 63

Multiple Choice

Herman Corporation had net income of $100,000 and paid dividends of $25,000 to common stockholders and $20,000 to preferred stockholders in 2020.Herman Corporation's common stockholders' equity at the beginning and end of 2020 was $450,000 and $550,000, respectively.Herman Corporation's return on common stockholders' equity is


A) 20.0%.
B) 16.0%.
C) 15.0%.
D) 11.0%.

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