Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.

Balance Sheets:
	2018	2017
Assets
Cash and equivalents	$90	$75
Accounts receivable	275	300
Inventories	375	350
Total current assets	$740	$725
Net plant and equipment	2,000	1,490
Total assets	$2,740	$2,215
Liabilities and Equity
Accounts payable	$150	$85
Accruals	75	50
Notes payable	140	165
Total current liabilities	$365	$300
Long-term debt	450	290
Total liabilities	$815	$590
Common stock	1,225	1,225
Retained earnings	700	400
Total common equity	$1,925	$1,625
Total liabilities and equity	$2,740	$2,215

Income Statements:
	2018	2017
Sales	$2,000	$1,500
Operating costs excluding depreciation	1,250	1,000
EBITDA	$750	$500
Depreciation and amortization	100	75
EBIT	$650	$425
Interest	62	45
EBT	$588	$380
Taxes (40%)	235	152
Net income	$353	$228
Dividends paid	$53	$48
Addition to retained earnings	$300	$180
Shares outstanding	100	100
Price	$25.00	$22.50
WACC	10.00%

What is the firms 2018 price/earnings ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Using the DuPont equation, what is the firms 2018 ROE? Do not round intermediate calculations. Round your answer to two decimal places.

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