E14-15 (Calculate rations to evaluate earnings performance.)

The following financial information is available for Plummer Corporation.

2017 2016

Average common stockholders equity $1,200,000 900,000

Dividends paid to common stockholders 50,000 30,000

Dividends paid to preferred stockholders 20,000 20,000

Net Income 290,000 200,000

Market price of common stock 20 15

The weighted-average number of shares of common stock outstanding was 80,000 for 2016 and 100,000 for 2017.

Instructions:

Calculate earnings per share and return on common stockholders equity for 2017 and 2016.