Reference no: EM132535650
Question - Crane Company had the following information in its financial statements for the years ended 2017 and 2018:
Cash dividends for the year 2018 $4500
Net income for the year ended 2018 98000
Market price of stock, 12/31/17 9
Market price of stock, 12/31/18 11
Common stockholders' equity, 12/31/17 1008000
Common stockholders' equity, 12/31/18 1201000
Outstanding shares, 12/31/18 100600
Preferred dividends for the year ended 2018 15800
Required - What is the rate of return on common stock equity for Crane Company for the year ended 2018?
a. 7.4%
b. 6.8%
c. 8.9%
d. 6.4%