Selected Financial Data for Irvington Company Appear Below During the Year,the Company Paid Dividends of $10,000 on Its

Multiple Choice

Selected financial data for Irvington Company appear below: $\begin{array}{lrr} & {\text { Account Balances }} \\& \begin{array}{c}\text { Beginning } \\\text { of year }\end{array} & {\begin{array}{c}\text { End of } \\\text { year }\end{array}} \\\text { Preferred shares } & \$ 125,000 & \$ 125,000 \\\text { Common shares } & 300,000 & 400,000 \\\text { Retained earnings } & 75,000 & 185,000\end{array}$



During the year,the company paid dividends of $10,000 on its preferred shares.The company's net income for the year was $120,000.The company's return on common shareholders' equity for the year was closest to which of the following?

A) 17%.
B) 19%.
C) 23%.
D) 25%.