A Company Reports the Following ​
Determine the (A) Return on Stockholders' Equity, and (B)

question 89

Essay

A company reports the following: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 350,000 \\\hline \text { Preferred dividends } & 50,000 \\\hline \text { Average stockhol ders' equity } & 1,000,000 \\\hline \text { Average common stockholders' equity } & 800,000 \\\hline\end{array}$$ ​
Determine the (a) return on stockholders' equity, and (b) return on common stockholders' equity. Round your answer to one decimal place.

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Definitions:

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