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ABC Corporation had $276,100 of net income for the year. Assume the company, which has no preferred stock, paid a $10 per share dividend at
ABC Corporation had $276,100 of net income for the year. Assume the company, which has no preferred stock, paid a $10 per share dividend at the time the stock was selling for $50 per share and there were 30,000 shares of $1 par value common stock outstanding for the entire year. Total stockholders equity was $2,440,000 at the beginning of the year and $2,580,000 at the end of the year. What was the return on common equity? a. 22% b. 8% c. 44% d. 11%
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