Based on the information in Table 43, assuming that the firm has no preferred stock, and paid $300,000 in common dividends, the firm's return on equity was

A.

61.89%.

B.

33.53%.

C.

79.43%.

D.

43.34%.

Table 4-3 Emery Corporation Balance Sheet Assets: Income Statement Cash $250,0001 $8,000,000 Accounts receivable 450,000 4,000,000 500,000 -2,900,000 Inventory Net fixed assets Sales (all credit) Cost of goods sold Operating expense Interest expense Income taxes Net income 2,100,000 -150,000 Total assets $3,300,000 380,000 $570,000 $100,000 Liabilities and owners' equity: Accounts payable Notes payable Long-term debt 450,000 1,050,000 1,700,0001 Owners' Equity Total liabilities and owner's equity $3,300,000