On January 1, 2014, Leonard Corporation purchased 1,000 shares of treasury stock. Other information regarding Leonard Corporation is provided below.

Compute
(a) Return on common stockholders€™ equity for each year
(b) Discuss the changes ineach.

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2013 2014 Net income Dividends on preferred stock Dividends on common stock Weighted-averag Common stockholders' equity beginning of year Common stockholders' equity end of year $200,000 $210,000 $30,000 $25,000 9,000 $600,000 $760,000 $760,000 $830,000 $30,000 $20,000 10,000 e number of common shares outstanding