7. Assume that all balance sheet amounts represent average balance figures for a fiscal year. The company has not issued preferred stock.

Total assets: $400,000

Common stock: $50,000

Additional Paid-in Capital: $150,000

Retained Earnings: $35,000

Sales: $120,000

Net income: $26,000

Shares of common stock outstanding: 8,000

Common dividends: $6,000

What is the return on common stockholders equity?

	a.	15.0%
	b.	12.8%
	c.	12.0%.
	d.	7.5%