Multiple Choice Question 195 Splish Brothers Inc had net inc

Multiple Choice Question 195 Splish Brothers Inc. had net incom stockholders and $15000 to preferred stockholders in 2017. Splish Brothers Inc.common stockholders\' equity at the beginning and end of 2017s was $445000 and $575000 respectively. Splish Brothers Inc. return on common stockholders\' equity is e of $122100 and paid dividends of $27000 to common 19 2590. a. b, C. d. 2196. 16%. 20%.

Solution

Average common stockholders\' equity = (445000+575000)/2= 510000 Net income for common shareholders = 122100-15000 = 107100 Return on common stockholders\' equity = 107100/510000= 21% Option B is correct