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Baratheon, Inc. reported net sales of $500,000 and net income of $100,000 for the current year. Baratheon paid dividends of $25,000 to its common stockholders
Baratheon, Inc. reported net sales of $500,000 and net income of $100,000 for the current year. Baratheon paid dividends of $25,000 to its common stockholders during the year. There was no preferred stock issued. Baratheons total stockholders equity was $1,000,000 at the beginning of the year and $1,200,000 at the end of the year. What is Baratheons return on common stockholders equity for the current year? (Recall that return on common stockholders equity equals net income less preferred dividends, divided by average common stockholders equity).
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