Question
Sealy Corporation had the following information in its financial statements for the years ended 2017 and 2018: Cash dividends for the year 2018$5,000 Net income
Sealy Corporation had the following information in its financial statements for the years ended 2017 and 2018:
Cash dividends for the year 2018$5,000
Net income for the year ended 201897,000
Market price of stock, 12/31/1710
Market price of stock, 12/31/1812
Common stockholders' equity, 12/31/171,000,000
Common stockholders' equity, 12/31/181,200,000
Outstanding shares, 12/31/18100,000
Preferred dividends for the year ended 201815,000
What is the rate of return on common stock equity for Sealy Corporation for the year ended 2018?
8.8%
6.8%
7.5%
6.5%
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