Concord corporation had net income of $67245 and paid dividends of $38000 to common stockholders and $16500 to preferred stockholders in 2017. concord corporation common stockholders' equity at the beginning and end of 2017s was $450000 and $545000, respectively. concord corporation return on common stockholders' equity is

Question

Joey Chang

Business

16 August, 15:30

Concord corporation had net income of $67245 and paid dividends of $38000 to common stockholders and $16500 to preferred stockholders in 2017. concord corporation common stockholders' equity at the beginning and end of 2017s was $450000 and $545000, respectively. concord corporation return on common stockholders' equity is

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Charlie Russell · Answer 1

Answer:$50745

Explanation:

Return on common stock holders equity (ROE) is the amount of return available to be distributed to the common stock holders after Interest, tax, and preference shareholders dividend have been deducted from the net income.

The common stock is the most risky because they are considered last in payment of return.

Net income minus preference dividend gives return to common stock holders.

$67245-$16500 = $50,745