Net income $110,000 $110,000

Dividends on preferred stock $10,000 $10,000

Dividends on common stock $1,600 $2,000

Common stockholders' equity, beg. of year $400,000* $500,000

Common stockholders' equity, end of year $400,000 $500,000

*Adjusted for purchase of treasury stock.

Compute the return on common stockholders' equity for each year.