The following information is available for Wendy's:

2006 2005

Common stockholders' equity $1,100,000 $900,000

Dividends paid to common stockholders $62,500 $57,600

Dividends paid to preferred stockholders $25,000 $20,000

Net income $250,000 $240,000

Common shares outstanding 100,000 100,000

Calculate Return on equity for 2006.