calculate earnings per share and return on common stockholders equity for 2012 and 2 581387

The following financial information is available for Monique Corporation.

2012

2011

Average common stockholders’ equity

$1,200,000

$900,000

Dividends paid to common stockholders

50,000

30,000

Dividends paid to preferred stockholders

20,000

20,000

Net income

290,000

200,000

Market price of common stock

20

15

The weighted average number of shares of common stock outstanding was 80,000 for 2011 and 100,000 for 2012.

Instructions

Calculate earnings per share and return on common stockholders’ equity for 2012 and 2011.