Question $4(20$ marks$)$

Selected information taken from the $20$X$2$ annual report of Aardvark Company is provided below. During

$20$X$2,$ the company has no nonoperating or nonrecurring items included in income and had no

outstanding preferred stock.

$($$ in millions$)20$X$220$X$1$

Sales $ $19,903$ $ $18,781$

Interest expense $130169$

Net income $1,1531,088$

Total assets $12,67312,461$

Dividends $(153)(131)$

Total stockholders$$ equity $ $4,288$ $ $4,007$

Assumed tax rate $35\%35\%$

Industry ROA $7\mathrm{.}32\%$

Industry operating profit margin $6\mathrm{.}1\%$

Required:

a$.$ For $20$X$2,$ calculate Aardvark$$s Return on common equity