Solved

The Following Information Pertains to Marsh Company What Is Marsh's Return on Common Stockholders' Equity?
A) 12

Question 259

Multiple Choice

The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.  Total asset $400,000 Stockholders’ equity-common 200,000 Total stockholders’ equity 280,000 Sales 120,000 Net income 24,000 Number of shares of common stock 8,000 Common dividends 9,000 Preferred dividends 6,000\begin{array} { l r } \text { Total asset } & \$ 400,000 \\\text { Stockholders' equity-common } & 200,000 \\\text { Total stockholders' equity } & 280,000 \\\text { Sales } & 120,000 \\\text { Net income } & 24,000 \\\text { Number of shares of common stock } & 8,000 \\\text { Common dividends } & 9,000 \\\text { Preferred dividends } & 6,000\end{array} What is Marsh's return on common stockholders' equity?


A) 12%.
B) 9%.
C) 7.5%.
D) 6.4%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions