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At year-end 2525 the company has Total assets of $6,200 financed by Debt of $3,400 and Stockholders equity of $2,800 . For 170 common shares

At year-end 2525 the company has Total assets of $6,200 financed by Debt of $3,400 and Stockholders equity of $2,800 . For 170 common shares outstanding, the equity price-to-book ratio at year-end 2525 is 1.36. During 2526, the company expects an asset turnover ratio (= Salest Total assetst-1 ) of 3.8 and an operating margin (= (Sales operating expenses) Sales ) of 7.1%. Interest charges will equal 9% of Debt. Corporate taxes equal 30% of taxable income and the payout ratio always is 60%. Your analyst tells you that at year-end 2526 the company price-to-earnings ratio will equal 4.4.What is the shareholders rate of return for year 2526?a. 25.6% b. 21.2% c. 31.0%d. 28.2%e. 23.3%

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