#58

The following information pertains to Crane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 40000
Accounts receivable (net)	20000
Inventory	15000
Property, plant and equipment (net)	250000
Total Assets	$325000

Liabilities and Stockholders Equity
Current liabilities	$ 40000
Long-term liabilities	35000
Stockholders equitycommon	250000
Total Liabilities and Stockholders Equity	$325000

Income Statement
Sales (net)	$ 150000
Cost of goods sold	60000
Gross profit	90000
Operating expenses	25000
Net income	$ 65000

Number of shares of common stock	5000
Market price of common stock	$18
Dividends per share	0.40

What is the return on common stockholders equity for Crane?

26%

12%

20%

54%