Electronics Importing Companies ABC Inc and XYZ LTD have the same beginning-of-the-year book value of equity and the same tax rate. The companies have identical transactions throughout the year and report all transactions similarly except for one. Both companies acquire a $400,000 printer with a three-year useful life and a salvage value of $0 on January 1 of the new year. Company ABC capitalizes the printer and depreciates it on a straight-line basis, and Company XYZ expenses the printer. The following year-end information is gathered for Company XYZ. Company X As of December 31 Ending shareholders equity $12,000,000 Tax rate 25% Dividends $0.00 Net income $1,000,000 Based on the information given, calculate Company XYZ return on equity using year-end equity: