A company reports the following: Net income $ 180,000 Preferred dividends 12,000 Average stockholders equity 1,200,000 Average

Question:

A company reports the following:

Net income $ 180,000
Preferred dividends 12,000
Average stockholders’ equity 1,200,000
Average common stockholders’ equity 800,000

Determine
(a) The rate earned on stockholders’ equity and
(b) The rate earned on common stockholders’ equity. Round to one decimal place