The following information pertains to marsh company for the current year: average total assets, $400,000 average common stockholders’ equity, $200,000 sales, $120,000 net income, $24,000 dividends on common stock, $9,000 dividends on preferred stock, $6,000 what is the company’s return on common stockholders’ equity for the current year
a. 7.5%.
b. 60%.
c. 9%.
d. 4.5%
e. 12%.

Return on common stockholder equity = 9%

so correct option is C. 9%

Explanation:

given data

total assets =  $400,000

common stockholders equity = $200,000

Sales =  $120,000

Net income = $24,000

Dividends common stock = $9,000

Dividends preferred stock = $6,000

to find out

company’s return on common stockholders’ equity

solution

we get here Return on common stockholder equity is here as

Return on common stockholder equity = Net income - Preferred dividends ÷ common stockholder equity      .......................1

put here value we get

Return on common stockholder equity =

Return on common stockholder equity = 9%

so correct option is C. 9%

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

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