Rate of return on common stockholders equity

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Reference no: EM13126701

Jennifer Company reports the following amounts for 2010:

Net income $135,000
Average stockholder's equity 500,000
Preferred dividends 35,000
Par value preferred stock 100,000

The 2010 rate of return on common stockholders' equity is:

a. 25.0%

b. 22.5%

c. 27.0%

d. 33.8%

Reference no: EM13126701

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