From the information above calculate: the return on common equity assuming that no dividends have been paid to the preferred shareholders. Options: a54% b11% c17% d21% e28%

Balance Sheet Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets 2.800,000 Less: accum. depreciation - (1,087,500) Net fixed assets Total assets $ 400.000 1,025,000 1,937,500 124,000 $3,486,500 $1,712,500 $5.199,000 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity Total liabilities and owner's equity $ 340,000 825,000 42,000 $1,207,000 1,175,000 2,817,000 $5.199.000 Income Statement Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income $7,375,000 (4,312,500) (1,387,500) (135,000) (127,000) 1,413,000 (625,000) $ 788,000 Common stock dividends $488,000