Salliq Ltd. reported the following selected information for the year ended January 31, 2012: profit, $14,000; beginning shareholders' equity, $104,000; and ending shareholders' equity, $122,000. Salliq has no preferred shares.

(a) Calculate the return on common shareholders' equity.

(b) Explain how your calculation in (a) would change if Salliq had preferred shares and had paid the preferred shareholders a dividend.