The following data are provided:

December 31,

	2018	2017
5% Cumulative preferred stock, $50 par	$100,000	$100,000
Common stock, $10 par	140,000	90,000
Additional paid-in capital	80,000	70,000
Retained earnings (includes current year net income)	250,000	215,000

Net income

50,000

Additional information: On May 1, 2018, 5,000 shares of common stock were issued. The preferred dividends were not declared during 2018. The market price of the common stock was $50 at December 31, 2018. The rate of return on common stock equity for 2018 is calculated as

50 420.

50 470.

45 420.

45 470.