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Cornerstone Exercise 10-37 (Algorithmic) Stockholder Profitability Ratios The following information pertains to Montague Corporation: Net income $51,000 Average common equity $1,500,000 Preferred dividends $7,500 Average

Cornerstone Exercise 10-37 (Algorithmic) Stockholder Profitability Ratios

The following information pertains to Montague Corporation:

Net income $51,000
Average common equity $1,500,000
Preferred dividends $7,500
Average common shares outstanding 100,000

Required:

Calculate the return on common equity and the earnings per share. Round your answers to two decimal places.

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