Return on Common Stockholders' Equity Smith & Sons, Inc., disclosed the following information in a recent annual report:

			2015		2016
Net Income			$63,000		$99,000
Preferred stock dividends			5,400		5,400
Average common stockholders' equity			2,400,000		3,000,000
Dividend per common share			2.16		2.16
Earnings per share			3.80		4.10
Market price per common share, year-end			39.00		42.00

Calculate the return on common stockholders' equity for Smith & Sons for 2015 and 2016.

Round answers to one decimal place. (Ex. 0.2345 = 23.5%) 2015 Answer

% 2016 Answer%

Did the return improve from 2015 to 2016? The return on common stockholders' equity Answerdeclinedimproved from 2015 to 2016.