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Crabtree Company's Net Income Last Year Was $50,000

Question 18

Multiple Choice

Crabtree Company's net income last year was $50,000.The company paid dividends on preferred shares of $20,000,and its average common shareholders' equity was $440,000.The company's return on common shareholders' equity for the year was closest to which of the following?


A) 4.5%.
B) 6.8%.
C) 11.4%.
D) 15.9%.

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