Average common? stockholders equity

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Reference no: EM131265576

For the current? year, Company A had sales of $350,000?, net income of $250,000 and average common? Stockholders' Equity of $900,000. During the same? year, Company B had sales of $210,000?, net income of $180,000 and average common? Stockholders' Equity of $440,000. Which of the following statements is TRUE regarding this? situation?

A. Company A has a better return on? equity, $250,000 compared to Company? B's $180,000.

B. Company B has a better return on? equity,40.91?% compared to Company? A's 27.78?%.

C. Company A has a better return on? equity, $350,000 compared to Company? B's $210,000

D. Company B has a better return on? equity, 85.71?% compared to Company? A's 71.43?%.

Reference no: EM131265576

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