11. The following information pertains to Cheng Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. All amounts are in thousands except per share items.

Assets

Property, plant and equipment 215,000

Inventory 27,000

Accounts receivable (net) 30,000

Cash and short-term investments 40,500

Total Assets 312,500

Equity and Liabilities

Shareholders equityordinary 177,500

Non-current liabilities 75,000

Current liabilities 60,000

Total Equity and Liabilities 312,500

Income Statement

Sales 90,000

Cost of goods sold 40,000

Gross margin 50,000

Operating expenses 30,000

Net income 20,000

Number of ordinary shares 5,000

Market price of ordinary shares 20

Dividends per share 1.00

What is the return on ordinary shareholders'equity for Cheng?

a. 22.5%

b. 11.3%

c. 28.2%

d. 50.7%