Multiple Choice Question 184

The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 44000
Accounts receivable (net)	35000
Inventory	26000
Property, plant and equipment	202000
Total Assets	$307000
Liabilities and Stockholders Equity
Current liabilities	$ 57000
Long-term liabilities	100000
Stockholders equitycommon	150000
Total Liabilities and Stockholders Equity	$307000
Income Statement
Sales revenue	$ 117000
Cost of goods sold	67000
Gross margin	50000
Operating expenses	26000
Net income	$ 24000
Number of shares of common stock	6100
Market price of common stock	$15
Dividends per share on common stock	0.60
Cash provided by operations	$39000

What is the return on common stockholders equity for this company?

a. 28.9%

b.16.0%

c. 25.7%

d. 35.4%

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