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The Shareholder's Equity Section of Killam Company Contains the Following

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The shareholder's equity section of Killam Company contains the following accounts and amounts:  Preferred shares 1,50,000 outstanding $1,250,000 Common shares 2,1,000,000 outstanding $2,500,000 Retained earnings $3,500,000 Net income $875,0001$100,000 dividends paid; 2$500,000 dividends paid \begin{array}{l}\begin{array} { l r } \text { Preferred shares } ^ { 1 } , 50,000 \text { outstanding } & \$ 1,250,000 \\\text { Common shares } ^ { 2 } , 1,000,000 \text { outstanding } & \$ 2,500,000 \\\text { Retained earnings } & \$ 3,500,000 \\\text { Net income } & \$ 875,000\end{array}\\{ } ^ { 1 } \$ 100,000 \text { dividends paid; } { } ^ { 2 } \$ 500,000 \text { dividends paid }\end{array} What was Killam's return on equity closest too?

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