Reference no: EM133114334

Question - The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

Assets

Cash and short-term investments $40,000

Accounts receivable (net) 30,000

Inventory 25,000

Property, plant, and equipment 280,000

Total assets $375,000

Liabilities and Stockholders' Equity

Current liabilities $ 60,000

Long-term liabilities 95,000

Stockholders' equity-Common 220,000

Total liabilities and stockholders' equity $375,000

Income Statement

Sales $90,000

Cost of goods sold 45,000

Gross margin $45,000

Operating expenses 15,000

Net income $30,000

Number of shares of common stock 6,000

Market price of common stock $20

Dividends per share $1.00

Cash provided by operations $40,000

Required - What is the rate earned on stockholders' equity?