Jackson Inc. reported net income of $186,000 during 2012 and paid dividends of $26,000 on common stock. It also paid dividends on its 10,000 shares of 6%, $100 par value, noncumulative preferred stock.

Common stockholders’ equity was $1,200,000 on January 1, 2012, and $1,600,000 on December 31, 2012.

The company’s return on common stockholders’ equity for 2012 is:

(a) 10.0%.

(c) 7.1%.

(b) 9.0%.

(d) 13.3%.