Question
Sealy Corporation had the following information in its financial statements for the years ended 2014 and 2015: Cash dividends for the year 2015 $ 5,000
Sealy Corporation had the following information in its financial statements for the years ended 2014 and 2015:
Cash dividends for the year 2015 $ 5,000
Net income for the year ended 2015 87,000
Market price of stock, 12/31/14 10
Market price of stock, 12/31/15 12
Common stockholders equity, 12/31/14 1,000,000
Common stockholders equity, 12/31/15 1,200,000
Outstanding shares, 12/31/15 100,000
Preferred dividends for the year ended 2015 10,000
What is the rate of return on common stock equity for Sealy Corporation for the year ended 2015?
7.9% | ||
6.4% | ||
7.0% | ||
6.5% |
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