A company reports the following:
Net income$ .................................................350,000
Preferred dividends.......................................50,000
Average stockholders' equity.......................1,000,000
Average common stockholders' equity........800,000?
Determine the (a) return on stockholders' equity and (b) return on common stockholders' equity. Round your answers to one decimal place.

Return On

generally starts a financial metric indicating the efficiency of an investment or comparing the efficiency of several investments, measuring profit in relation to capital invested.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity.

Common Stockholders' Equity

The portion of a corporation's equity that belongs to holders of its common shares, consisting of capital invested by the shareholders plus retained earnings.