Neef Corporation has provided the following financial data from its balance sheet and income statement:

	Year 2			Year 1
Total assets	$	1,302,000		$	1,330,000
Total stockholders' equity	$	885,000		$	880,000

Income Statement
For the Year Ended December 31, Year 2
Sales (all on account)	$	1,420,000
Cost of goods sold		890,000
Gross margin		530,000
Operating expenses		493,000
Net operating income		37,000
Interest expense		17,000
Net income before taxes		20,000
Income taxes (35%)		7,000
Net income	$	13,000

The companys return on equity for Year 2 is closest to: