The following information pertains to Montague Corporation: Net income ............................................... $1,420,000 Average common equity ...................... $18,650,000 Preferred

Question:

The following information pertains to Montague Corporation:
Net income ............................................... $1,420,000
Average common equity ...................... $18,650,000
Preferred dividends ................................... $245,500
Average common shares outstanding ...... 625,000

Required:
Calculate the return on common equity and the earnings per share. (Note: Round answers to two decimal places.)