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Sunland Inc. reported net income of $252000 during 2017 and paid dividends of $22000 on common...

Sunland Inc. reported net income of $252000 during 2017 and paid dividends of $22000 on common stock. It also has 9000 shares of 7%, $100 par value preferred stock outstanding. Common stockholders’ equity was $1180000 on January 1, 2017, and $1520000 on December 31, 2017. The company’s return on common stockholders’ equity for 2017 is:

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Answer #1
Averaeg Common Stockholder's equity = (1180000+1520000)/2 = 1350000
Net Income for common stock holder:
Net Income for the year 252000
Less: Preferred dividend (9000*100*7%) 63000
Net Income for common stock holder: 189000
Divide: Average Common Stockholder's equity 1350000
Retrn on Common Stockholdere's equty 14%
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