Connors, Inc provides the following information for 2017

Net income $180,000
Market price per share of common stock $20.00/share

Common stockholders' equity at Jan. 1, 2017 $1,100,000
Common stockholders' equity at Dec. 31, 2017 $1,500,000
12% preferred stock outstanding $100,000

Calculate return on common stockholders' equity. (Round to two decimals.)
What will be an ideal response

Net income $180,000
Preferred dividend* 12,000
Earnings available to common stockholders $168,000
Average common stockholders' equity / $1,300,000
Return on common stockholders' equity** 12.92% .* Preferred Dividend = $100,000 x .12
**Return on common stockholders' equity = (Net income - Preferred dividend) / Average common stockholders' equity