On January 1, 2019, Vahsholtz Corporation purchased 5,000 shares of treasury stock. Other information regarding Vahsholtz Corporation is provided as follows.

Compute
(a) Return on common stockholders' equity for each year, and
(b) Discuss the changes in each.

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2018 2019 Net income Dividends on preferred stock Dividends on common stock Weighted-average number of common shares outstanding Common stockholders' equity beginning of year Common stockholders' equity end of year $100,000 $110,000 30,000 30,000 20,000 $ 25,000 45,000 $600,000 $750,000 $750,000 $830,000 50,000