Kearin Corporation has provided the following financial data:

Balance Sheet December 31, Year 2 and Year 1
Assets	Year 2	Year 1
Current assets:
Cash	$33,000	$100,000
Accounts receivable	281,000	250,000
Inventory	122,000	130,000
Prepaid expenses	68,000	80,000
Total current assets	504,000	560,000
Plant and equipment, net	1,016,000	980,000
Total assets	$1,520,000	$1,540,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$80,000	$100,000
Accrued liabilities	31,000	30,000
Notes payable, short term	56,000	70,000
Total current liabilities	167,000	200,000
Bonds payable	260,000	260,000
Total liabilities	427,000	460,000
Stockholders' equity:
Common stock, $5 par value	500,000	500,000
Additional paid-in capital-common stock	70,000	70,000
Retained earnings	523,000	510,000
Total stockholders' equity	1,093,000	1,080,000
Total liabilities & stockholders' equity	$1,520,000	$1,540,000

Income StatementYear 2 For the Year Ended December 31, Year 2
Sales (all on account)	$1,300,000
Cost of goods sold	800,000
Gross margin	500,000
Operating expenses	448,692
Net operating income	51,308
Interest expense	19,000
Net income before taxes	32,308
Income taxes (35%)	11,308
Net income	$21,000

Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on equity for Year 2 is closest to:

71.44%

4.72%

2.97%

1.93%