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A company reports the following: Net income Preferred dividends $ 2 6 0 , 0 0 0 1 0 , 4 0 0 1 ,
A company reports the following:
Net income
Preferred dividends
$
Average stockholders' equity
Average common stockholders' equity
Determine a the return on stockholders' equity and b the return on common stockholders' equity. If required, round your answers to one decimal place.
a Return on Stockholders' Equity
b Return on Common Stockholders' Equity
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a Divide net income by average stockholders' equity.
b Divide net income minus preferred dividends by average common stockholders' equity.
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