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  1. business
  2. accounting
  3. the company's return on equity is approximately 13

The company's return on equity is approximately 13.44%. The company...

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Accounting

The company's return on equity is approximately 13.44%.

The company has returned approximately $0.09 for every $1 invested in equity.
The company's management should be concerned about the return for every $1 invested by common stockholders.
The company's return on assets is approximately 9.31%.

The following information was extracted from the accounting records of Company A: Net income $330,000 Interest expense $220,000 Total assets on 1.1.x1 $8,220,000 Total assets on 12.31.x1 $8,430,000 Total common equity on 1.1.x1 $2,800,000 Total common equity on 12.31.x1 $3,000,000 Preferred dividends $60,000 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.)

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