Balance Sheet

Current assets

Cash 1,050,000

Acc receivable not given

Inventories 1,500,000

Fixed assets 4,280,000

TOTAL ASSETS 7,500,000

Current liabilities

Acc payable not given

Long-term debt 2,300,000

Common stock 600,000

Retained earnings 3,960,000

TOTAL LIAB and EQUITY 7,500,000

Income Statement

Sales 22,500,000

Operating expense 18,680,000

EBIT 3,820,000

Interest expense 230,000

EBT 3,590,000

Taxes 1,436,000

Net income 2,154,000

What is the firm's return on common equity?

A.31.40%

B.359.00%

C.54.39%

D.28.72%

E.47.24%