17.2

9.Common Stockholders' Profitability Analysis

A company reports the following:

Net income $225,000 Preferred dividends 9,000 Average stockholders' equity 2,008,929 Average common stockholders' equity 1,173,913

Determine (a) the the return on stockholders' equity and (b) the the return on common stockholders' equity. If required, round your percentages to one decimal place.

a.Rate earned on stockholders' equity___________

B.Rate earned on common stockholders' equity _________