1.

A corporation's December 31, balance sheet shows the following:

8% preferred stock, $10 par value, cumulative, 40,000 shares authorized; 20,000 shares issued $200,000 Common stock, $1 par value, 4,000,000 shares authorized; 2,600,000 shares issued, 2,560,000 shares outstanding, $2,600,000 Paid-in capital in excess of par value preferred stock, $180,000 Paid-in capital in excess of par value common stock, $52,000,000 Retained earnings, $23,500,000 Treasury stock (40,000 shares), $1,020,000

The company's total stockholders' equity is

Group of answer choices

$78,480,000.

$78,500,000.

$53,960,000.

$77,460,000.

$79,500,000.

2.

In its first year, a corporation reported sales revenue of $1,250,000, net income of $200,000, and paid dividends of $26,000 to common stockholders. It also paid dividends on its 10,000 shares of 5%, $100 par value, noncumulative preferred stock. Common stockholders' equity was $1,200,000 at the start of the year and $1,500,000 at the end of the year. How much is the company's return on common stockholders' equity in its first year?

Group of answer choices

11.11%

7.1%

9.0%

10%

13.3%