Common Stockholders' Profitability Analysis

A company reports the following:

Net income	$125,000
Preferred dividends	5,000
Average stockholders' equity	1,157,407
Average common stockholders' equity	618,557

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

a. Rate earned on stockholders' equity	%
b. Rate earned on common stockholders' equity	%