Selected financial data for Channel Co. is provided below:

($ in millions)
Sales	$	50,000
Interest expense		1,000
Tax expense		2,000
Net income		7,000
Total assets (beginning of year)		52,000
Total assets (end of year)		60,000
Total liabilities (end of year)		24,000
Total stockholders equity (end of year)		36,000

What is the return on assets for Channel Co.?

Multiple Choice

• 13.5%.

• 11.7%.

• 17.9%.

• 12.5%.