On January 1, 2017, Vahsholtz Corporation purchased 5,000 shares of trea-

Compute return on stock sury stock. Other information regarding Vahsholtz Corporation is provided as follows.

Compute

(a) return on common stockholders’ equity for each year, and

(b) discuss the changes in each.

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Net income Dividends on preferred stock Dividends on common stock Weighted-average number of common shares outstanding Common stockholders' equity beginning of year Common stockholders' equity end of year 2017 $110,000 $ 30,000 2016 $100,000 $ 30,000 $ 25,000 $ 20,000 45,000 50,000 $750,000 $600,000 $830,000 $750,000