Smith company the following information on the financial statements: net income$50,000preferred dividends8,000average common stockholder's equity180,000average number of common shares outstanding250,000sharesmarket price$2per sharewhat is the rate of return on common stockholder's equity (to nearest percent)?

28%

Explanation:

Now to find rate of return we just divide net income by average common stockholder's equity:

rate of return = ($50,000 / $180,000) x 100 = 27.78%

Since we are told to round to nearest percent, we must round up to 28%

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.