Common Stockholders' Profitability Analysis A company reports the following: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity $150,000 6,000 1,111,111 734,694 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 7.4 X % % Feedback Check My Work a. Divide net income by average stockholders' equity. b. Divide net income minus preferred dividends by average common stockholders' equity. Check My Work Previous Next