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Bavarian Sausage, Inc. posted the following balance sheet and income statement for 2015. Balance Sheet Assets 2015 Cash and securities $50,000 Accounts receivable 125,000 Inventories

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Bavarian Sausage, Inc. posted the following balance sheet and income statement for 2015. Balance Sheet Assets 2015 Cash and securities $50,000 Accounts receivable 125,000 Inventories 225.000 Total current assets $400,000 Net plant and equipment $525.000 Total assets $925,000 Liabilities and Equity Accounts payable $185,000 Notes payable 125.000 Total current liabilities $310,000 Long-term bonds $115.000 Common stock $ 350,000 Retained earnings 150.000 Total liabilities and equity $925,000 Income Statement Net sales Operating costs except depreciation Depreciation Earnings bef interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding Common dividends Int rate on notes payable & L-T bonds Year-end stock price 2015 $525,000 215,000 65.000 $ 245,000 35.000 $ 210,000 71.400 138,600 100,000 $632.73 6.25% $15.00 What is Bavarian Sausage, Inc.'s return on common equity for 2015 (pick the closest one)? A 28% B. 189 C. 37% OD. 1196 E. 15% Refer to Bavarian Sausage, Inc., what is the company's tax rate for 2015? A 2896 B. 34% OC. 37% D. 35% E. 2396

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