Question15

A:

Marigold Corp. had the following information in its financial statements for the years ended 2020 and 2021:

Cash dividends for the year 2021	$4900
Net income for the year ended 2021	97600
Market price of stock, 12/31/20	10
Market price of stock, 12/31/21	12
Common stockholders equity, 12/31/20	998000
Common stockholders equity, 12/31/21	1209000
Outstanding shares, 12/31/21	100300
Preferred dividends for the year ended 2021	14600

What is the rate of return on common stock equity for Marigold Corp. for the year ended 2021?

6.9%

8.8%

7.5%

6.5%

B:

Which of the following is not a characteristic of an employee stock-purchase plan?

The plan offers no substantive option feature.

Substantially all full-time employees may participate on an equitable basis.

Unlimited time period permitted for exercise of an option as long as the holder is still employed by the company.

Discount from the market price of the stock no greater than would be reasonable in an offer of stock to stockholders or