Selected information for Irvington Company is as follows:
| | December 31 | | | Year 1 | Year 2 | | Preferred stock, 8%, par $100, nonconvertible, noncumulative | $125,000 | $125,000 | | Common stock | 300,000 | 400,000 | | Retained earnings | 75,000 | 185,000 | | Dividends paid on preferred stock for year ended | 10,000 | 10,000 | | Net income for year ended | 60,000 | 120,000 |
Irvington’s return on common stockholders’ equity, rounded to the nearest percentage point, for year 2 is
A. 23%B. 25% C. 19% D. 17% |
