A company reports the following: Net income ............................................................................. $1,225,000 Preferred dividends ..................................... ................................ 47,800 Average stockholders equity

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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.

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Related Book For  book-img-for-question

Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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