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Common Stockholders' Profitability Analysis A company reports the following: Net income $1,000,000 Preferred dividends 50,000 Average stockholders' equity 6,250,000 Average common stockholders' equity 3,800,000 Determine
Common Stockholders' Profitability Analysis
A company reports the following:
| Net income | $1,000,000 |
| Preferred dividends | 50,000 |
| Average stockholders' equity | 6,250,000 |
| Average common stockholders' equity | 3,800,000 |
Determine (a) the rate earned on stockholders' equity and (b) the rate earned on common stockholders' equity.
| a. Rate earned on stockholders' equity | % |
| b. Rate earned on common stockholders' equity | % |
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