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Question 78 (2 points) The following information pertains to Blue Flower Company. Assume that all balance sheet amounts repre
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Answer #1

RETURN ON COMMON STOCKHOLDERS' EQUITY

Return on common stockholders' equity = Net Income / Average common Stockholders' Equity * 100

Net Income = $20,000

Average common Stockholders' Equity = $155,000

Return on common stockholders' equity = $20,000 / $155,000 * 100 = 12.9%

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