Behnke Pharmaceuticals accounting system provided the following data for the last two years:

$20202019$

Revenues......................... $....$ $ $40,000$ $ $25,000$

Cost of goods sold............ $.......22,5006,000$

Operating expenses......... $.......10,0005,000$

Interest expense......................... $1,500750$

Income tax....................... $.........2,5001,500$

Total assets...................... $.....150,000120,000$

Total liabilities................... $.......80,00060,000$

Total equity....................... $.......70,00060,000$

Required

Calculate return on equity for $2020$ and place your answer in the space provided. Explain what each ratio measures in general, and what each specifically indicates for Behnke Pharmaceuticals.

$($value to $2$ decimal places and do not use the $\%$ sign in your answer$)$