Herman Corporation Had Net Income of $120,000 and Paid Dividends

Multiple Choice

Herman Corporation had net income of $120,000 and paid dividends of $24,000 to common stockholders and $20,000 to preferred stockholders in 2014. Herman Corporation's common stockholders' equity at the beginning and end of 2014s was $450,000 and $550,000, respectively. Herman Corporation's return on common stockholders' equity is

A) 24.0%.
B) 20.0%.
C) 19.2%.
D) 15.2%.