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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
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.
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