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Common Stockholders' Profitability Analysis
A company reports the following:
Net income$1,000,000
Preferred dividends 50,000
Average stockholders' equity 6,250,000
Average common stockholders' equity 3,800,000
Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. (Round percentages to one decimal place.)
a. Return on stockholders' equity %
b. Return on common stockholders' equity %
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