Balance Sheet (Millions of $)
Assets		2018
Cash and securities		$5,000
Accounts receivable		12,500
Inventories		12,500
Total current assets		$30,000
Net plant and equipment		$20,000
Total assets		$50,000
Liabilities and Equity
Accounts payable		$11,040
Accruals		4,960
Notes payable		7,000
Total current liabilities		$23,000
Long-term bonds		$12,000
Total liabilities		$35,000
Common stock		$4,200
Retained earnings		10,800
Total common equity		$15,000
Total liabilities and equity		$50,000
Income Statement (Millions of $)		2018
Net sales		$70,000
Operating costs except depreciation		65,100
Depreciation		1,400
Earnings before interest and taxes (EBIT)		$3,500
Less interest		1,140
Earnings before taxes (EBT)		$2,360
Taxes		944
Net income		$1,416
Other data:
Shares outstanding (millions)		500.00
Common dividends (millions of $)		$495.60
Int rate on notes payable & L-T bonds		6%
Federal plus state income tax rate		40%
Year-end stock price		$33.98

Refer to Exhibit 4.1. What is the firm's ROE? Do not round your intermediate calculations.

Question 16 options:

	8.68%
	9.44%
	11.42%
	7.84%
	9.91%