Net Devices Inc. The following balance sheets and income statements are for Net Devices Inc, a manufacturer of small electronic devices, including calculators, personal digital assistants and mp3 players. For purposes of these questions assume that the company has an effective tax rate of 35%. UABILTIES ( $ in thousands) INCOME STATEMENTS ( $ in thousands) Fiscal year end Net sales Cost of Goods Sold Gross profit Selling, general \& admin. Exp. Income before deprec, \& amort. Depreciation \& amortization Interest expense Income before tax Provision for income taxes Minority interest Net income Outstanding shares (in thousands) Preferred Dividends (in thousands) Year 2 Year 1 $11,455,500$11,082,100 (8,026.450)(7.940,065) 3,429,0503,142,035 \begin{tabular}{r|r} 1,592,650(1.836,400) & 1,352,835(1,789,200) \\ & \end{tabular} (785.250)(757.250) (46.195) (43340) 761,205552,245 (157.725) (112.290) 308.515303.095 $85,000$85,000 Refer to the information for Net Devices Inc. What is Net Devices' retum on common shareholders' equity for Year 2 ? a. 35.81% b. 30.89% c. 42.16% d. 26.54% Refer to the information for Net Devices Inc. What is Net Devices" capital structure leverage ratio for Year 22 a. 10.32 b. 3.71 c. 3.89 d. 1.68 Refer to the information for Net Devices Inc. What is Net Devices' earnings per share for Year 2 ? a. $1.96 b. $0 c. $1.70 d. $1.00