10. Farmer Company reports the following amounts for 2018: Net income $135,000 Average stockholders' equity 500,000 Preferred dividends 15,000 Par value preferred stock 100,000 The 2018 rate of return on common stockholders' equity is a. 30.0% b. 24.0% c. 27.0%. d. 33.8%. 11. At December 31, the stockholders' equity of Smith Company was as follows: Common stock, $5 par value: 1,100,000 shares issued and 1,000,000 shares outstanding Additional paid-in capital Retained earnings Treasury stock, (100,000 shares) Total stockholders' equity The book value per share of common stock is a. $7.00 b. $7.20 c. $8.40 d. $7.70 $5,500,000 1,400,000 1,500,000 (700,000) $7,700,000