The following selected data were taken from the financial statements of Yellowstone Group, Inc. for December 31, 2007, 2006, and 2005:

The 2007 net income was $150,000, and the 2006 net income was $180,000. No dividends on common stock were declared between 2005 and 2007.
a. Determine the rate earned on total assets, the rate earned on stockholders€™ equity, and the rate earned on common stockholders€™ equity for the years 2006 and 2007. Round to two digits after the decimal place.
b. What conclusions can be drawn from these data as to the company€™sprofitability?

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December 31. December 31 December 31 2007 2006 2005 Total assets . .. . 1,450,000 $1,300,000 1,100,000 187,500 450,000 187,500 450,000 187,500 450,000 Preferred $10 stock, $100 par, cumulative, 200,000 205,000 nonparticipating (no change during year) 200,000 495,000 200,000 365,000