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The following information was extracted from the accounting records of Company A: Net income $330. Interest expense $220, Total assets on 1.1.x] $8.220. Total assets
The following information was extracted from the accounting records of Company A: Net income $330. Interest expense $220, Total assets on 1.1.x] $8.220. Total assets on 12.31.11] $8.430. Total common equity on 1.1.x] $2.800. Total common equity on 12.31.31 $3, , Preferred dividends Which of the following statements is correct assuming an industry standard return on equity of 8%? (For this problem, round the answer to two decimal places.) 0 The company's management should be concerned about the return for every $1 invested by common stockholders. O The company's retum on equity is approximately 13.44%. 0 The company's return on assets is approximately 9.31%. O The company has returned approximately $0.09 for every $1 invested in average assets
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