Assume that all balance sheet amounts represent average balance figures for a fiscal year. The company has not issued preferred stock.

Total assets: $400,000

Common stock: $50,000

Additional Paid-in Capital: $150,000

Retained Earnings: $35,000

Sales: $120,000

Net income: $26,000

Shares of common stock outstanding: 8,000

Common dividends: $6,000

What is the return on common stockholders equity?

a.

7.5%

b.

12.0%.

c.

15.0%

d.

12.8%