Calculation of return on common stockholders' equity.
The following information is available for Wenger Corporation:
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Beginning stockholders' equity
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$700,000
|
|
Dividends paid to common stockholders
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50,000
|
|
Dividends paid to preferred stockholders
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30,000
|
|
Ending stockholders' equity
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800,000
|
|
Net income
|
165,000
|
Instructions
Based on the preceding information, calculate return on common stockholders' equity.