Chapter 13, Problem 13.34E

Computing rate of return on common stockholders' equity

Louisville Exploration Company reported these figures for 2016 and 2015:

	2016	2015
Income Statement-partial:
Net Income	$ 15,500,000	$ 18,800,000
Balance Sheet-partial:
	Dec. 31, 2016	Dec. 31, 2015
Total Assets	$ 324,000,000	$ 316,000,000
Preferred Stock	2,600,000	2,600,000
Common Stock	180,000,000	171,000,000
Retained Earnings	7,000,000	5,500,000
Total Stockholders' Equity	$ 189,600,000	$ 179,100,000

Compute rate of return on common stockholders' equity for 2016 assuming no dividends were paid to preferred stockholders.