Return on stockholders’equity Vvdlk ifiDCk transactbiis The Edirne Company experi- enced the following stock transactions during 1992:

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Feb. 1 sold 2,000 shares for $100 each May 1 sold 1,000 shares for $120 each July 1 sold 1,500 shares for $120 each Oct. 1 sold 2,000 shares for $150 each On January 1, 1992, the company's stock records showed that the company had 20,000 shares of $10 par value common stock issued and outstanding. The shares traded in the market on January 1, 1992 for $98 per share. The general ledger showed that the 20,000 shares had additional paid in capital of $800,000. Retained Earnings on December 31, 1992 had a credit balance of $500,000 before closing entries. On December 31, the stock is trading in the market for $155 per share. The company has no preferred stock. During 1992, Edirne Company earned $400,000. REQUIRED Compute the return on stockholders' equity using: a. The beginning balance in stockholders' equity. b. The ending balance in stockholders' equity. c. The average balance in stockholders' equity using a monthly average for your calculations.