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Sealy Corporation had the following information in its financial statements for the years ended 2017 and 2018: Cash dividends for the year 2018$5,000 Net income

Sealy Corporation had the following information in its financial statements for the years ended 2017 and 2018:

Cash dividends for the year 2018$5,000

Net income for the year ended 201897,000

Market price of stock, 12/31/1710

Market price of stock, 12/31/1812

Common stockholders' equity, 12/31/171,000,000

Common stockholders' equity, 12/31/181,200,000

Outstanding shares, 12/31/18100,000

Preferred dividends for the year ended 201815,000

What is the rate of return on common stock equity for Sealy Corporation for the year ended 2018?

8.8%

6.8%

7.5%

6.5%

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