Common Stockholders'ProfitabilityAnalysis

A company reports the following:

Net income $170,000

Preferred dividends 6,800

Average stockholders' equity 1,393,443

Average common stockholders' equity 906,667

Determine (a) thethe return on stockholders' equityand (b) thereturn on common stockholders' equity. If required, round your percentages to one decimal place.

a.The rate earned on stockholders' equity ________%

b.The rate earned on common stockholders' equity ________%