Common stockholders’ profitability analysis Obj. 5 A company reports the following:

Net income $1,225,000 Preferred dividends 47,800 Average stockholders’ equity 8,750,000 Average common stockholders’ equity 5,400,000 Determine

(a) the return on stockholders’ equity and

(b) the return on common stockholders’

equity. Round percentages to one decimal place.

AppendixLO1