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Common Stockholders' Profitability Analysis A company reports the following: Net income $375,000 Preferred dividends 75,000 Average stockholders' equity 2,500,000 Average common stockholders' equity 1,875,000 Determine
Common Stockholders' Profitability Analysis
A company reports the following:
| Net income | $375,000 |
| Preferred dividends | 75,000 |
| Average stockholders' equity | 2,500,000 |
| Average common stockholders' equity | 1,875,000 |
Determine (a) the the return on stockholders equity and (b) the the return on common stockholders equity. Round percentages to one decimal place.
| a. Return on Stockholders Equity | % |
| b. Return on Common Stockholders Equity | % |
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