Selected information for Berry Company is as follows: Average common stock .......... $600,000 Average additional paid-in capital

Question:

Selected information for Berry Company is as follows:
Average .......... $600,000
Average additional paid-in capital ...... 250,000
Average retained earnings .......... 370,000
Sales revenue for year ........... 915,000
Net income for year ............. 240,000
Berry’s return on equity, rounded to the nearest percentage point, is
a. 20 percent
b. 21 percent
c. 28 percent
d. 40 percent
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...