1218. Net income available to stockholders is Rs 150 and total assets are Rs 2,100 then return on total assets would be

✅ The correct answer is B.
Net income available to stockholders = 150

Total assets = 2100

Return on common equity rate shows the net income earned per every rupee invested.It acts as a yardstick of profitability.

Return on common equity

= (net income – preferential stock)/Average common stock holder’s equity

No further information is available

= (150/2100)×100

= 7.14%