Average common stockholders’ equity $3,015 $3,090 Dividends declared for common stockholders 365 655 Dividends declared for preferred stockholders 40 40 Net income 685 730 Calculate the payout ratio and return on common stockholders’ equity ratio for 2017 and 2016

Year 2016

Payout ratio

= (Dividends Paid to Common Stockholders/ Net Income) * 100

= 655/730 * 100

= 89.7%

Return on Common Stockholder's Equity

= ((Net Income - Preferred Stock Dividend) / Average Common Stockholder's Equity) * 100

= ((730 - 40)/ 3,090) * 100

= 22.3%

Year 2017

Payout ratio

= (Dividends Paid to Common Stockholders/ Net Income) * 100

= 365/ 685 * 100

= 53.3%

Return on Common Stockholder's Equity

= ((Net Income - Preferred Stock Dividend) / Average Common Stockholder's Equity) * 100

= ((685 - 40)/ 3,015) * 100

= 21.4%

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.