For Year 2, Etzkorn Corporations sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, its net income before taxes was $42,714, and its net income was $29,900. The companys total stockholders equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000. The companys return on equity for Year 2 is closest to:

Multiple Choice

5.24%

3.67%

60.16%

7.82%